Watch: How NGT diesel vehicle ban will impact auto stocks

Know how the NGT diesel vehicle ban will impact auto companies stocks...

Zee Media Bureau

New Delhi: The National Green Tribunal last week directed that diesel-run vehicles will not be registered in Delhi with immediate effect and asked the central and state government departments not to purchase diesel vehicles.

According to the industry estimates, the order has led to an immediate impact on 'thousands' of diesel vehicles, including high-end cars, that have already been booked by the customers in Delhi by making full or part payments and the process was underway to deliver those vehicles and get them registered.

The exact number of affected vehicles could not be ascertained immediately, while many more 'thousands' of diesel vehicles would also have to remain in godowns as the companies would not be able to sell the inventory they had lined up for year-end sales.

Industry estimates suggest this would mean possible losses to the tune of hundreds of crores of rupees. Most automakers effect price hikes in the month of January, due to which many customers tend to buy the vehicles in the year-end period when discounts are also available.

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