Future of cars older than 15 years

For owner of cars older than 15 years, there is uncertainty about future of the car. Once the RC get expired, it is illegal to run the car on road. The RC can be renewed for short period of time by paying additional Road Tax and Fitness test. RC renewal process varies from state to state. However in most of cases it is not worth to get the car RC renewed and it is good to Scrap and get car recycled. A car scrapped must also be deregistered (RC cancelled from RTO).

Need for Recycling while scrapping

In the age of recycling where everyone is making effort to save things and recycle of used products to save environment & cut costs, automobile industry does not seem to very upbeat about the same.Yes, there is very negligible & unorganized effort by various scrap dealers functioning out of the areas like Mayapuri in Delhi, Sotiganj market in Meerut, some scattered work in Gurgaon, Noida & Faridabad but nothing is in proper way unlike western countries like USA where automobile sector is no. 1 in recycling. It is very important for the industry and society to have organized & environment friendly scrap yards in various parts of the country. We need to first understand why we need to have policy for scrapping of car when they reach to end of their useful life. First of all, we need to take a look over growth story of automobile sector of India. Read further about car scrapping and environment here.

Impact of growth

Three decades ago Indians have only two models to choose from, only after liberalization leader of automobile companies such as Maruti, Ford, Toyota and home grown auto mobile companies such as Tata & Mahindra start operations. With relaxation in policy and globalization of Indian Market, demand gets started increasing in local markets and  Indian auto mobile market has become the most growing industry globally. It has also become fourth largest exporter in Asia with respect to auto mobile industry. Market of India have absorbed around 20 million passenger vehicles in last ten years only excluding commercial vehicles & two wheeler. Market is expected to sell around 6 million units alone in 2020 as per the projection made by SIAM. Normally passenger vehicles have useful life around 10-12 years but Indian car owners ride their vehicles around 15-19 years in the absence of any policy over age of vehicles. Due to change in consumer behavior, competitive nature of automobile companies & relaxed financing options, customers have started purchase new car in 5-8 years now. Cars after used over 10-12 years goes to scrap or customer try to sell in rural market from metros.Huge scrap vehicles will start coming from 2015 due to ageing and specifically in Delhi & NCR after NGT order of banning diesel vehicles of 15 years and above.

Resale it or Scrap it?

There is a lot of anxiety amongst the owner of petrol cars older than 15 years & Diesel cars older than 10 years in Delhi & NCR after NGT ruling of banning this vehicles from plying roads of Delhi. Since areas like Noida, Ghaziabad, Faridabad & Gurgaon are adjoining areas and people has to travel through & to the Delhi for their various purpose, NGT order likely to affect them too. NGT order has impacted resale price of old vehicles and certain customers have started considering scrap as safe option on expiry of their RC.However, most of the customers in expectation of better money wants to sell their cars in interior areas of Punjab, UP & Haryana but demand in such area for such vehicles set to hit due to huge supply from Delhi & NCR region. Major impact to the models which are no longer in production & to the models which have upgraded versions in present times. Here are the list of such models:

Models which are no longer in production
  1. Daewoo Cielo and Matiz
  2. Fiat
  3. Fiat 118 NE
  4. Fiat Sienna
  5. Fiat UNO
  6. Fiat UNO
  7. Ford Escort
  8. Ford Ikon
  9. HM Ambassador
  10. HM Contessa
  11. Hyundai Sonata
  12. Maruti 1000
  13. Maruti 800
  14. Maruti A star
  15. Maruti Baleno
  16. Maruti Estillo
  17. Maruti Gypsy
  18. Maruti Sx4
  19. Maruti Versa
  20. Maruti Zen
  21. Mitsubishi Cedia
  22. Mitsubishi Lancer
  23. Opel Astra
  24. Peuogot 309
  25. Premiere Padmini
  26. Tata Sierra and more which are not in the list
Models which have been upgraded

Most of the companies have upgraded their star models to retain competitiveness in market but there are certain which have upgraded and changed completely new upgraded vehicle to old vehicle. Some of them are listed below:
1.Honda City
2.Hyundai Verna
3.Tata Sumo
4.Maruti Swift
5.Volkswagen Vento
6.Mahindra Scropio
7.Ford Fiesta
8.Maruti Alto
9.Maruti Esteem
10.Hyundai Accent
11.Hyundai i20
12.Hyundai i10
13.Hyndai Santro
14.Honda Civic
15.Honda CRV
15.Tata indigo and many more which are not featured in the list

Cars which have gone off the production line will feel the burnt of low price in resale or more likely no taker at all. These car will ultimately have to go for scrap only. Court is using hard stick to save environment by implementing law of scrapping of vehicle after certain age otherwise car owner never want to scrap their as it does not give value of Rs. 10,000/- to 30,000/- only as per the models (check model wise car scrap price here).However, these vehicles must be major contributor of pollution as they have older technology in compare of newer version of car. Newer version of cars are following latest or better pollution curbing techniques.This ruling is in favor of environment as well as industry because it will not only help environment but also keep on adding demand over the period of time.

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