The Supreme Court on Wednesday imposed ban on the sale and registration of BS-III vehicles from April 1, 2017.
The order is a big setback for the automakers who are estimated to have total inventory of 8.2 lakh as per SIAM data. The estimated worth of these BS-III vehicles is about Rs 12,000 crore.
From April 1, only BS-IV compliant vehicles can be sold by auto companies. The bench was headed by Justices Madan B Lokur and Deepak Gupta.
As per SIAM Data, the industry has inventory of 96,000 BS-III Commercial Vehicles, six lakh 2-wheelers and 40,000 3-wheelers. The court rejected auto firms' plea over the demand for relief of six to seven months. BS -IV emission norms will come into force from April 1 this year.
The manufacturers told the court that they were allowed to sell their stocks with old emission norms on previous two occasions when the industry had switched to BS-II and BS-III in 2005 and 2010.
Voicing his support for the Supreme Court's decision, Bajaj Auto MD Rajiv Bajaj said that he was delighted with the SC order on BS-III vehicle ban and it is the right thing for our children.
The damage to some of the auto companies could be more than it was anticipated. This is a signal that things are changing, Bajaj added
Bharat Stage emission standards, introduced in 2000, are emission standards that have been set up the Central government to regulate the output of air pollutants from internal combustion engine equipment, including motor vehicles. The different norms are brought into force in accordance with the timeline and standards set up by the Central Pollution Control Board which comes under the Ministry of Environment and Forests and Climate Change. The Bharat Stage norms are based on European regulations.