BS III Vehicles: What Next For Auto Manufacturers?

It seeks implementation of a government notification to switch to new emission standards - Bharat Stage-IV (BS-IV) -from April 1. It includes 96,724 commercial vehicles, 6,71,308 two-wheelers, 40,048 three-wheelers and 16,198 cars, the paper reported.

The Supreme Court is seized of the matter where automobile manufacturers are seeking permission for disposing of around 8.2 lakh BS3 vehicles in stock.

According to The Hindustan Times, the ruling could deal a Rs 12,000-crore blow to auto manufactures as about 820,000 vehicles, majority two-wheelers, are lying unsold.

The Supreme Court has banned sale and registration of all vehicles not complying with Bharat Stage IV or BS-IV emission norms from April 1, 2017, badly jolting the auto industry saddled with an inventory worth Rs 20,000 crore.

Following, the ban on the sales and registration of BS III vehicles after April 1, 2017, many brands and their dealers are offering big discounts.

HMSI is offering cash back offer of Rs 22,000 on its BS-III scooters and motorcycles while market leader Hero MotoCorp offered discounts of up to Rs 12,500.

Even though the number of unsold stock of BS III is small, keeping in view of public health concerns, commercial interests are not important, the judges held. However, the auto market remained stable as most of the products available now in the market already adhere to BS-IV norms. The order is expected to impact around 8 lakh BS-III compliant vehicles that are ready for sale. Hero Motocorp has over 3.28 lakh units of BS-III vehicles in its inventory which is estimated to be over 1,200 crore.

He further said: "By the end of today, March 31, we would have sold nearly all of our BS III inventory".

The court further ruled that all the vehicle registering authorities under the Motor Vehicles Act, 1988, are prohibited from registering non-BS-IV compliant vehicles except on proof that such a vehicle has already been sold on or before 31 March 2017.

  • Zachary Reyes