The National Green Tribunal (NGT) issued an order to ban all diesel vehicles older than 10 years in Delhi, in a bid to address pollution issues.

Last year, the National Green tribunal (NGT) had asked Delhi to ban such vehicles saying that: "Pollution levels are at alarming levels and residents of Delhi deserve better."

The authority had also said such vehicles coming from other states should also not be allowed to enter Delhi.

The order will have two impacts. Firstly, in the short run, it could boost demand for new vehicles (cars and utility vehicles) in the city. Secondly, it will turn buyers further away from diesel cars hence sales drop in the diesel segment can be expected. It will also impact the re-sale price of used diesel cars.