Luxury on the Scrap List: Delhi’s Fuel Ban Forces High-End Cars into Distress Sales

Image Source : CNBC

Delhi’s aggressive push for cleaner air has triggered a wave of distress selling among luxury car owners, as a new fuel ban targeting older vehicles leaves prized possessions unsellable and unusable. The fallout from the July 1 regulation—barring fuel stations from servicing diesel vehicles older than 10 years and petrol vehicles older than 15—has already led to dramatic losses, including a 2015 MercedesBenz ML350 originally bought for Rs 84 lakh, now sold for just Rs 2.5 lakh.

Key Developments and Personal Fallout

Delhi resident Varun Vij was forced to sell his 10yearold Mercedes ML350 for Rs 2.5 lakh, despite the SUV being in excellent condition with only 1.35 lakh km on the odometer
The vehicle had minimal maintenance history and was a key part of the family’s life, used for weekly 7–8 hour drives to pick up Vij’s son from hostel
Vij had hoped to renew the registration but found no buyers willing to take the risk under the new rule
He has now invested Rs 62 lakh in an electric vehicle to avoid future policy shocks

Policy Details and Enforcement

The fuel ban was enacted under the directive of the Commission for Air Quality Management (CAQM)
Fuel stations across Delhi are now prohibited from dispensing fuel to diesel vehicles older than 10 years and petrol vehicles older than 15
Automated Number Plate Recognition systems are being installed at pumps to identify endoflife vehicles in real time
The Transport Department has issued SOPs mandating logs of denied fuel transactions and legal action against violators

Wider Impact and Market Disruption

Thousands of vehicle owners are now facing similar dilemmas, with many receiving scrap value offers or being forced to sell outside NCR
Another affected resident, Ritesh Gandotra, had to sell his 8yearold Range Rover Evoque—bought for Rs 55 lakh—for a fraction of its value due to the diesel ban
The preowned luxury car market is expected to see a surge in distress listings, with owners scrambling to offload vehicles before enforcement intensifies
The policy has sparked debate over its fairness, especially for responsible owners who maintained their vehicles meticulously

Environmental Goals vs Economic Realities

The regulation aims to curb vehicular pollution in Delhi, which has long struggled with hazardous air quality levels
Critics argue that the policy penalizes ownership rather than incentivizing cleaner alternatives, especially given the high GST and cess on new vehicles
The shift is expected to accelerate EV adoption, but also raises concerns about affordability and infrastructure readiness

As Delhi’s fuel ban reshapes the city’s automotive landscape, the stories of owners like Vij and Gandotra highlight the emotional and financial toll of abrupt policy shifts—where environmental urgency meets personal upheaval.

Sources: CNBC TV18, Financial Express, Moneycontrol, News18, CarToq, LiveMint

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