BS-III Ban Effect — Vehicles Worth Rs 5,000 Crore Still Unsold Despite Hefty Discounts

Society of Indian Automobile Manufacturers (SIAM) stated that an increasingly uncertain business environment would impact the investments in the automobile sector. The ban on BS-III vehicles affected over 8 lakh vehicles worth Rs 20,000 crore.

SIAM Director General, Vishnu Mathur said, "Currently, there are around 1.2 lakh units of BS-III vehicle inventory worth around Rs 5,000 crore. Most of them are lying with the dealers."

He stated that only two-wheeler manufacturers managed to liquidate the BS-III stocks by offering massive discounts. The results of this hefty discounts were a loss of revenue worth Rs 1,2000 crore.

SIAM stated that as per government notifications, the sale of BS-III vehicles were allowed after April 1, 2017. But the apex court ultimately banned the BS-III citing public health concerns.

Mathur further said, "The increasing uncertainty due to uncertain business environment will affect investments in auto industry." He stated that the abrupt policy changes would impact the long-term of the industry.

Mathur said that it's up to the companies to handle the unsold BS-III vehicles. Some manufacturers have also stated that exporting the BS-III vehicles would be the best option.