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TVS Motor offers low-cost BS IV upgrade to dealers with old-tech two-wheelers

TVS Motor, Hero Motocorp and Bajaj Auto are among a few two-wheeler companies that have BS III inventory after the March 31, 2017 deadline to phase out BS III vehicles.

May 03, 2017 / 10:09 AM IST
 
 
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Chennai-based TVS Motor issued a circular to its dealers in the last week of April detailing its plans of converting old Bharat Stage III (BS III) vehicles to BS IV.

“Despite the best effort some of the dealers had reported some BS III vehicles left over with them. Based on the [old] BS III stock details shared by you, we will be taking back all the BS III vehicles which are produced on or after April 2016,” noted the circular.

TVS Motor, Hero Motocorp and Bajaj Auto are among the few two-wheeler companies saddled with BS III inventory after the March 31, 2017 deadline to phase out BS III vehicles.

The company will be crediting the invoiced amount to the dealers' account after the old stock is returned. "Once the vehicles are converted to BS IV the same vehicles that are taken back will be supplied to your dealership," added the circular.

While TVS Motor has promised to absorb the conversion cost — a nominal processing amount of Rs 2,000 per vehicle will be charged to the dealer.

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The company said that it will export most of the BS III products bought back from dealers, TVS Motor told Moneycontrol in an email.

“The unsold BS III stocks are very minimal. However, we are working together with our dealers in getting back the products. Majority of these products will be exported,” said a TVS Motor spokesperson.

As per data filed by the Society of Indian Automobile Manufacturers before the Supreme Court on March 20, there were about 6.71 lakh unsold BS III two-wheelers in the market. The auto industry sold about 6 lakh units, mainly two-wheelers, on the last two days of March, nearly half of the 1.4 million monthly units it sells on average in the country.

This was after dealers were asked by companies to offer mouth-watering discounts to liquidate BS III stock, ranging from Rs 10,000 for a standard motorbike to a couple of lakhs for a sportsbike. Despite the rush, some models of unspecified lot remained unsold by March 31.

Two-wheeler makers, who were producing BS III type products even beyond the middle of March, were forced to slam the brakes on output just before the Supreme Court verdict came out.

Delhi-based Hero Motocorp, which had the largest stock of BS III vehicles, clocked a decline of 3.5 percent in sales to its dealers at 591,306 units in March as against 612,739 units sold in the same month last year.
first published: May 3, 2017 10:09 am
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