Used diesel car sales could go up

Kochi: While car makers are worried about the National Green Tribunal (NGT) order banning registration of new diesel vehicles with a capacity of 2000cc and above, the resale value of luxury diesel cars in the above category is expected to increase. Dealers of used cars and owners of high-end diesel cars expect that the resale value of these vehicles to increase as new luxury diesel cars cannot be registered as per the NGT order.
"Though there is some confusion among buyers about the NGT order, the demand for newly-purchased diesel cars above 2000cc will increase since MVD has stopped new registration," said Sanjay Oberoi, manager, Surya, a seller of pre-owned cars.According to him, the ban will not produce the desired results as there are no facilities for compressed natural gas (CNG) conversion.
The order is also a big worry for owners of diesel cars that are over five years old as the resale value may fall for such vehicles.
The demand for diesel cars in the state became very evident when NGT issued similar guidelines in New Delhi. As a result, there was a heavy inflow of diesel cars -- mostly five to 10 years old -- from Delhi to other states, including Kerala.
"After the rule came into effect in Delhi, there was a big demand for popular brands such as Innova from Delhi. The price of a 10-year-old Innova plunged to Rs 2 to 3 lakhs and several people from Kerala bought them after completing reregistration formalities. At least 6,000 Delhi registered Innova cars were sold in Kerala," said Shiju Yohannan, a pre-owned car seller based in Kochi. Meanwhile, the order is confusing people who are planning to buy new cars. "I have paid an advance for a used Mahindra Bolero which is above the 2000cc category. I have not yet changed my mind as the vehicle is only three years old," said V S Shyam, a freelance videographer.