The Auto industry is going to suffer huge losses and may lose as much as Rs 12,000 crores as the Supreme Court has announced banning of sale and registration of BS-III vehicles from April 1.
While no discounts have been announced on the vehicles, it is expected that in coming days, the companies would cut down their prices.
Right now, there are as many as 7.5 lakh BS-III two-wheelers. Also, as on March 20, the total inventory, including commercial vehicles, passenger vehicles, two-wheelers and three-wheelers, stood at 8.24 lakh units.
Some blame that as BS-IV fuel is not easily available, so buyers kept buying BS-III vehicles and now the announcement has put pressure on the automobile industry. Siam president Vinod Dasari said, “While no one pushed for BS-IV fuel availability for seven years for faster changeover, this sudden decision—just a few days before the changeover—is rather unfortunate as it causes undue stress on the entire industry.”
However, some suggest that BS-III vehicles, which are up for sale, will now be exported to those countries where they are still permitted.
Meanwhile, some in the industry are in favour of the ban put on BS-III vehicles and said that it will not have a huge impact on the industry as those vehicles will either be upgraded or exported.
Chairman of Hero Moto, Pawan Munjal said, “We have reduced inventory significantly in past few months with an aim to minimize stakeholder losses. However, environmental protection will take precedence over temporary financial benefits.”