Germany bans diesel cars: What effect is it likely to have?


 | Updated: Feb 27, 2018, 02:41 PM IST
A top German court ruled on Tuesday in favour of allowing major cities to ban heavily polluting diesel cars.

Carmakers to work on new model lineups

Carmakers have been adapting their model lineups to make up for consumers' sudden shift to gasoline vehicles. Traffic bans in Europe's biggest auto market would likely influence policies across the region.

Consumers worry over resale values and possible recalls

Any restriction will likely accelerate the drop in demand from consumers already worried about resale values and possible recalls.

National road traffic regulations to get overhauled

Affected cities would need at least six months to redraw their anti-pollution strategies before any bans could take effect. Prior to any implementation, German lawmakers will likely be asked to overhaul nationwide road traffic regulations.

Driving bans affect vehicles with Euro-5 emissions-control technology

According to a Reuters report, driving bans probably affect vehicles equipped with Euro-5 emissions-control technology and older models. Of the 15 million diesel cars on Germany`s roads last year, about 2.7 million were fitted with the latest Euro-6 standard, which has applied to all new cars sold since September 2015, according to the KBA motor vehicle watchdog.

12 million vehicles to take the hit

The move is likely to hit the value of 12 million vehicles in Europe's largest car market and force carmakers to pay for costly modifications.