Ban on BS-III vehicles: Expect heavy discounts on cars, 2-wheeler inventory

Of this, 96,000 are commercial vehicles, 600,000 two-wheelers and 40,000 three-wheelers

Expect heavy discounts at automotive dealerships, especially two-wheeler sales outlets, over the next two days. As the clock ticks towards the deadline of a ban on the sale of BS-III vehicles after March 31, automotive dealers across the country are expected to make a last-ditch effort to sell their inventory.

As of now, dealerships are sitting on a total inventory of 824,000 vehicles that are BS-III compliant. Of this, 96,000 are commercial vehicles, 600,000 two-wheelers and 40,000 three-wheelers. A judgement from the Supreme Court on Wednesday banned registration and sale of BS-III vehicles from April 1, thus rendering an inventory, estimated to be worth Rs 12,000 crore, practically worthless.

Around 20,000 automotive dealers across the country are thus staring at an uncertain future. John Paul, president, The Federation of Automobile Dealers Associations (FADA), said it had come as quite a blow for dealers. “In small towns, this might mean the end of business for many dealers and sub dealers, especially of commercial vehicles,” he said, adding that the association was waiting for the copy of the order to understand the fine print.

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