A big blow to the automobile industry as Supreme Court passed a new order on emissions of the vehicles. From April1st all the BS-3 vehicles will be banned and registration will not be done for BS-3 vehicles. If any BS-3 vehicles found to be sold or registered from April 1st then certain actions will be taken. This new order from Supreme Court will leave automobile companies in losses as they have many BS-3 units in stock.
Government has ordered seven years back that vehicles should be complaint with Bharat Stage -4 (BS-4). But due to fuel deficiency the automobile companies are manufacturing BS-3 vehicles which are similar to BS-4 norms. But now Supreme Court banned all the new BS-3 vehicles. This leaves the automobile industry in India with Rs 20,000 crore. Overall around 8 lakh vehicles are in stocks which are not compliant with BS-4 norms.
Few automobile companies have released new model cars with BS-4 norms but still they do have stocks with BS-3 complaint vehicles. A total of 6.71 two-wheelers, 97,000 commercial vehicles and 40,000 three-wheelers are available in the stock which are not compliant with Bharat Stage 4. However many automobile companies have taken necessary actions on this as they have tried to sell majority of the BS-3 vehicles.
Automobile companies have stopped manufacturing BS-3 compliant vehicles and are transforming vehicles to BS-4. This may affect automobile companies and the dealers in a pretty bad way. Few experts say that due to this huge loss to automobile companies, vehicle rates may increase rapidly to cover this loss caused by Supreme Court. However this new rule may not affect Maruti Suzuki and Hyundai Motor India as these two companies are manufacturing BS-4 compliant vehicles since 2010 when the government passed the new rule.
This new rule will help in protecting the environment as BS-3 compliant vehicles are badly affecting the environment and also causing lot of harm to people’s health. This new rule made the environmental protectors happy and also helps in reducing the pollution. Bs-4 compliant vehicles are friendly vehicles which do not release dangerous carbon from the vehicles.
But do not worry as only selling vehicles after April 1st is illegal but you can even register your vehicles even after April 1st.