The Supreme Court’s decision to implement the ban on Bharat Stage Emission Standards III (BS III) vehicles has resulted in a frenzy among automobile dealers, with showrooms offering huge discounts to get rid of existing inventory. The Supreme Court directed companies to stop selling BS III compliant vehicles from April 1, giving showrooms limited time to dispose of existing vehicles.
According to industry sources, eight lakh BS III compliant vehicles remained unsold as of March this year. Two-wheelers account for around 70 per cent of these numbers, with 6,71,305 bikes up for sale. The number of commercial vehicles stood around 1 lakh, while 16,198 cars and 40,048 three-wheelers complete these numbers.
Showrooms, in a bid to sell these vehicles have resorted to huge discounts, some ranging as high as Rs.3 lakh for high-end superbikes. While some dealers began offering discounts beginning March, most of them have catapulted these rates, with typical discounts ranging between 15-20 per cent of the vehicle cost.
Car dealers are offering discounts in the range of Rs.50,000 for some cars, hoping to get rid of BS III compliant stocks.
With the Supreme Court banning the sale and registration of such vehicles from April 1, there has been a huge increase in footfall at showrooms across the country. Most cars in the country already adhere to BS IV guidelines, resulting in reduced emissions and pollution.
With the country facing severe pollution levels, any drop in emissions by vehicles can help improve overall quality of air. BS III norms have been in place in India since 2010. The new BS IV norms are Euro IV compliant, with certain parts of the country enforcing them from 2016.
Come April 1 this year, BS IV norms will be applicable across the country.