Post the Supreme Court hearing last month which banned the sales and registration of all BS-III vehicles, many dealers and auto makers were forced to clear their existing inventory and were offering huge discounts. SIAM claims that these discounts have added up to a loss of over Rs 1,200 crore.
This is not the first time the auto industry has faced such a big loss. During the diesel ban which lasted for eight months between December 2015 - July 2016 the industry suffered a loss of over Rs 4,500 crore and now with banning of BS-III vehicles the industry is likely to report a loss of Rs 2,000 crore.
While diesel ban affected passenger vehicles with over 2.0L diesel engines, the BS-III vehicles registration ban has affected the commercial vehicle and two-wheeler industry. The Auto industry with no other option left is looking to export its unsold inventory to its export markets.
