The complete eradication of vehicles based on BS III norms from the face of the Indian auto sector has brought in a heavy loss of approximately 5 thousand crores. As huge as 1 lakh 20 thousand BS III compliant have gone to trash as they are not eligible to be sold in the markets any longer. Thus, to deal with the situation, companies are planning to export them to the markets where BS III is still applicable. Of course, bringing the vehicles back to their manufacturing points and replacing its machinery to the BS IV compatible one is out of the question, as it would cost a heavy sum to the companies. Thus, exporting them as CBUs or dumping the inventory to their loss are the only plausible options left. The auto industry at present comprises of 6.71 lakh two-wheelers, 96,700 commercial vehicles, 40,048 three-wheelers and 16,198 passenger vehicles, costing around 14 thousand crores cumulatively. The ban of such a heavy number of vehicles has shaken the very base of the auto sector, which is still planning and plotting to get done with these vehicles at least without any loss.
Not only this, the companies have faced a huge loss because of the discounts it offered on the BS III based vehixcles' sales. In order to do away with the vehicles, the companies announced heavy discounts before 31st March as BS IV went on boards from 1st April. In that clearance sales, it cost them a huge loss of more than 12 k crore and is likely to go up to 2 k crore.
If such is the scenario on the switch from BS III to one level up, God knows what will happen if the govt. actually decides to skip BS V norms nd directly imply BS VI in the year 2020.
