It is estimated that the industry could incur staggering loss of 20,000-30,000 crore due to the ban.
Keeping public health on fore, the Supreme Court today ordered ban on sales of BS III compliant vehicles from April 1, 2017. According to the Society of Indian Automobile Manufacturers (SIAM) data, the industry has colossal backlog of 8.24 lakh BS III compliant vehicles. It was however cleared by the Apex court that the auto companies were notified well in time (2010) regarding the decision, yet they chose to take no action.
The decision was taken on the account of perilous pollution condition across country. It is estimated that the industry could incur staggering loss of 20,000-30,000 crore due to the ban. While the industry is taken aback with the decision, some top officials have hinted at diverting the stock to overseas markets. To help you understand the repercussions of the imposed ban, here is a quick walk through of myths and truths. Read on to know more.
The Supreme Court has upheld the ban on sales and registration of BS III compliant vehicles. This means BS III compliant vehicles will neither be sold nor registered from April 1, 2017.
The BS III compliant vehicles sold before March 31, 2017 are allowed to be registered provided the owner has proper proof of date of sale of the vehicle.
There is an inventory of 8.24 lakh unsold BS III compliant vehicles which comprises of 96,000 commercial vehicles, 670,000 two-wheelers, 40,000 three-wheelers and 16,000 passenger cars. The collective value for the inventory has been estimated at Rs 12,000 crore.
According to the Federation of Automobiles Dealers Association (FADA) the ban will incur heavy financial losses to 20,000 dealers across the nation. The stock will remain with the dealers to sell it if and when demand rises.