Companies dealing in second-hand vehicles reported a sharp rise in customer inquiries during the first few days of Delhi’s recent ban on fuel for overage vehicles, with many buyers from outside the capital expressing interest in buying cars at heavily reduced prices.
The fuel restriction, which came into effect on July 1, applies to vehicles deemed “end-of-life” – diesel vehicles older than 10 years and petrol vehicles older than 15 years with expired fitness certificates. These vehicles are automatically deregistered and cannot be transferred, making scrapping the only legal option.
Between July 1 and July 3, when uncertainty surrounded the policy, second-hand car dealers in Delhi saw a surge in interest from potential buyers.
“We observed a 25 percent increase in leads related to such vehicles based on a three-day comparison around the ban period,” said Hanish Yadav, senior vice president and business head at Spinny.
Amit Malhotra, who runs United Cars India in CR Park, said their dealership saw an even sharper rise.
“Normally, we receive three to four queries daily. But during that time, we were getting nearly 50 calls a day,” he said. “Most of the inquiries were from southern India, where people thought they could get cars at much cheaper prices.”
The spike came as the Delhi government urged the Centre’s air quality panel to suspend the directive, citing technological challenges in enforcement. In a letter to Commission for Air Quality Management (CAQM) chairman Rajesh Verma, Delhi Environment Minister Manjinder Singh Sirsa said the ban was not feasible and promised efforts to resolve concerns about restrictions on the movement of older vehicles.
The Chamber of Trade and Industry (CTI) reported a steep drop in the prices of second-hand vehicles in the capital, estimating a fall of 40 to 50 percent.
CTI chairman Brijesh Goyal said the market has taken a major hit, affecting nearly 60 lakh vehicles.
“In the last five days, the prices of second-hand cars have dropped by 40 to 50 percent,” Goyal said. “Dealers are now compelled to sell vehicles at one-fourth of their original price.”
CARS24 founder and CEO Vikram Chopra explained that once a vehicle’s registration is cancelled, its resale is not legally allowed.
“Even if you sell off the vehicles informally, the original owner remains liable if the vehicle is later involved in an accident,” he said.
CARS24, which is tied up with registered scrapping facilities, offers users an instant estimate for scrapping old vehicles.
While the government considers the next steps, the sudden rule change has already disrupted Delhi’s used car market and created new challenges for owners of older vehicles.