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.
Road tax increased for automobile industry New Delhi sources have stated that the cheer that goods and service tax has brought to the automotive market has diminished, with concerns mounting over the risk of states raising road tax to offset revenue loss and was added that Maharashtra has already decided to increase the levy on vehicles by 2% to compensate for the absence of octroi, a state tax which has now been merged with GST.
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