BS-III vehicles ban: 2-wheeler industry took Rs 600-crore hit

Mumbai, May 1 

The two-wheeler industry is estimated to have incurred a loss of Rs 600 crore due to the three-day discount offered to customers after the Supreme Court ordered a ban on sale of BS-III vehicles, a report said.

The major chunk of the loss is expected to be borne by the Original Equipment Makers (OEMS) even as retro-fitment of the unsold vehicles to make them BS IV-compliant is also an alternative, the report by ratings firm Icra said today.

The apex court on March 29 banned the sale and registration of BS-III category vehicles or those not compliant with Bharat Stage IV (BS IV) emission norms from April 1. The step was taken due to concerns on vehicular emission.

The BS norms are emission standards imposed on automobile manufacturers which specify the maximum permissible limits for pollutants in the exhaust fumes of automobiles.

“The total loss for the two-wheeler industry on account of the discounts offered during March 30-31, 2017 is estimated to be around Rs 600 crore, sizeable share of which would be borne by the OEMs,” senior group VP at ICRA Subrata Ray said in the report.

The SC ban triggered heavy discounts across the country as auto dealers, including those selling two-wheelers, looked to clear stocks.

As many as 6.71 lakh two-wheelers, out of over 8 lakh BS-III vehicles, were impacted by the ban. The dealers tried to clear the BS-III inventory as fast as possible by offering massive discounts. — PTI

OEMs to suffer maximum brunt 

The major chunk of the loss is expected to be borne by the Original Equipment Makers (OEMS) even as retro-fitment of the unsold vehicles to make them BS IV-compliant is also an alternative, the report by ratings firm Icra said