As BS IV rollout deadline looms, auto dealers say 900,000 BS III vehicles unsold

After March 31, India plans to switch to BS IV fuel across the country. The shift to BS IV ensures that auto industry will move to BS VI by 2020. Concerns over alarming rise in pollution level had prompted the transport ministry to announce shift to BS IV last year.

The SC had, on Monday, asked Society of Indian Automobile Manufacturers (SIAM) to submit details of unsold BS III vehicles manufactured after December 2015.

While the automobile companies are on-board with the switch, they are opposing ban on BS III vehicles as many finished products are with dealers.

According to a Business Standard report, the government ruling speaks of a ban on manufacturing of BS III vehicles, not their sale and registration.

The Environment Pollution Control Authority has been in talks with automobile dealers since October for BS II inventories.

Dealers tend to keep stock of vehicles with them and sell them when the demand for them rises. “There is substantial stock of unsold BS III vehicles, including some of such stock received in recent times,” said John K Paul, President of Fada told Mint.

For smaller dealers, the ban will not only impact finances, but also employment, he said.

However, industry sources say that old vehicles could be sold post the deadline with heavy discounts, but that too will take some time.