Shares of leading automobile companies such as Maruti Suzuki, Tata Motors, Mahindra & Mahindra, and Hyundai’s local suppliers are likely to be in focus after the Supreme Court on August 12, 2025, barred police and other authorities from taking any coercive action against owners plying petrol vehicles older than 15 years and diesel vehicles more than 10 years old in the Delhi National Capital Region (NCR). The interim order, passed by a Bench headed by Chief Justice of India B.R. Gavai, effectively stalls an October 2018 apex court ban on operating vehicles that had crossed these age limits, providing immediate relief to thousands of commuters in the region.
The ruling comes against the backdrop of long-standing debate over the enforceability and impact of blanket age-based restrictions on vehicles. Delhi’s Environment Minister, Manjinder Singh Sirsa, had earlier criticised the policy as “premature” and “potentially counterproductive,” pointing to operational challenges and urging that any bans be based on scientific data rather than arbitrary timelines. The court’s decision will allow owners of older vehicles to continue using them while broader policy deliberations are undertaken.
Government data highlights the scale of the issue, with Delhi alone home to around 6.2 million end-of-life (EoL) vehicles, including 4.1 million two-wheelers, while the wider NCR region has approximately 4.4 million such vehicles. A significant portion of these are concentrated in high-density urban zones, where enforcement of the 2018 ban has been contentious and resource-intensive.
Market participants note that the order could temporarily ease replacement pressure on vehicle owners, potentially affecting immediate demand for new vehicles. However, it may also boost sentiment in the NCR, one of the country’s largest automobile markets, by removing near-term uncertainty for existing owners. The eventual impact on four-wheeler auto stocks such as Maruti Suzuki, Tata Motors, and Mahindra & Mahindra will depend on the duration of the interim relief and any subsequent changes to vehicle scrappage and replacement policy frameworks.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
