New Delhi, Mar 23 () Auto stocks plunged up to 20 per cent on Monday as companies have suspended their production due to the coronavirus outbreak. Motherson Sumi Systems cracked 20 per cent and Ashok Leyland fell 18 per cent, Maruti Suzuki India (17.02 per cent), Bajaj Auto (13.95 per cent) and Apollo Tyres (13.86 per cent). Shares of TVS Motor Company settled 12.94 per cent down while that of MRF and Eicher Motors dropped 12.34 per cent and 11.87 per cent, respectively, on the BSE. Likewise, Hero MotoCorp declined 11.07 per cent, Tata Motors (9.95 per cent) and M&amp;M (9.06 per cent). The BSE Auto Index tumbled by 13.35 per cent. The country's largest two-wheeler maker Hero MotoCorp on Sunday said it has suspended production at all its sites across the globe until March 31, 2020 in order to safeguard its employees against coronavirus infections. On Monday, Maruti Suzuki India (MSI) said Suzuki Motor Gujarat has suspended production at its Gujarat-based plant to check the spread of COVID-19. Suzuki Motor Gujarat manufactures cars on contract basis for MSI. The company has been informed by Suzuki Motor Gujarat Pvt Ltd (SMG) that pursuant to Gujarat government directive to check the spread of COVID-19 transmission, they are closing their plant operations with effect from B-shift from March 23 through March 25, 2020, as per a regulatory filing. Rockman Industries, the auto components arm of the Hero Group, on Monday said it has suspended all operations at its seven manufacturing facilities till March-end due to coronavirus outbreak. SUM RAM

Coronavirus: Auto stocks skid up to 20 pc on production suspension

<ul><li>The SC allowed registration of <keyword id="142302" type="COMPANY" weightage="20" keywordseo="BS-IV">BS-IV</keyword> vehicles, which were sold before the <keyword id="8902499" type="UNKNOWN" weightage="20" keywordseo="nationwide-lockdown">nationwide lockdown</keyword> in March, but couldn't get the registration process done.</li><li>The apex court noted that only those vehicles would be registered whose details were uploaded on the government's Vahan portal.</li><li>The <keyword id="6799687" type="UNKNOWN" weightage="20" keywordseo="BS6-emission-norms">BS6 emission norms</keyword> were brought into effect in April 2020. But, the transition has not been as smooth as it was expected to be due to the <keyword id="8595403" type="UNKNOWN" weightage="20" keywordseo="Coronavirus-outbreak">coronavirus outbreak</keyword> in the country. </li></ul><keyword id="1346916" type="COMPANY" weightage="20" keywordseo="The-Supreme-Court-of-India">The Supreme Court of India</keyword> on Thursday allowed registration of BS-IV vehicles, which were sold before the nationwide lockdown in March, but couldn't get the registration process done due to the coronavirus induced lockdown period. However, the apex court noted that only those vehicles will be registered, which were bought before the lockdown and whose details were uploaded on the government's Vahan portal. After this decision, nearly <a href="https://www.timesnownews.com/auto/features/article/39000-bs4-vehicles-barred-from-registration-following-sc-s-new-order/636483">39,000 BS-IV vehicles sold after that will not be eligible</a> for registration. The BS-VI emission norms were brought into effect in April 2020. But this transition has not been as smooth as it was expected to be due to the coronavirus outbreak in the country. Following the appeal by the automotive industry, the Supreme Court on July 8 recalled its previous order (of March 27), which allowed the sale of BS-IV vehicles for ten days across India, except in Delhi National capital region (NCR), post lockdown. But it turned out that dealerships ended up selling more BS-IV vehicles than the court permitted, after which the court had to ban registration of BS-IV vehicles in India temporarily. Back then, it said it would have to examine whether these transactions were "genuine" or "backdated". What are BS-VI norms? Bharat Stage (BS) Emission Norms for the vehicles operated on the Indian roads were announced for the first time two decades back. Referred to as the VI stage of Bharat Stage Emission norms, the main difference between the BS-IV and the BS-VI norms is the amount of sulphur content in the emissions. While BS-IV compliant vehicles release 50 ppm (parts per million) sulphur, the BS-VI compliant vehicles will only release 10 ppm sulphur. BS-VI also comes with a critical change in the approval procedures for light-duty vehicles. It has mandated that portable emissions measurement systems (PEMS) be used for in-service commission testing. In 2018, the Supreme Court had issued a ban on the sales and registration of BS-IV vehicles from April 1, 2020. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-today-britannia-hero-motocorp-ashok-leyland-mm-financial-indiabulls-housing-and-more/articleshow/77516263.cms" data-type="tilCustomLink">Top stocks to watch today— Britannia, Hero MotoCorp, Ashok Leyland, M&amp;M Financial, Indiabulls Housing and more</a> <a href="https://www.businessinsider.in/tech/news/it-only-takes-50-tweets-to-find-a-troll-on-twitter/articleshow/77512151.cms" data-type="tilCustomLink">It only takes 50 tweets to find a troll on Twitter</a>

Supreme Court allows registration of BS-IV vehicles bought before lockdown

<ul><li><keyword id="87849" type="PERSON" weightage="20" keywordseo="Pawan-Munjal">Pawan Munjal</keyword>’s investment is a part of the Series B round raised by <keyword id="3933763" type="PERSON" weightage="20" keywordseo="GoMechanic">GoMechanic</keyword>. </li><li>The startup had already raised $15 million from Chiratae Ventures, Sequoia Capital and Orios Venture Partners last year.</li><li>GoMechanic has 280 technology-enabled multi-brand network of car service centers and workshops across twelve cities in India.</li></ul><keyword id="46577" type="CITY" weightage="20" keywordseo="Hero-group">Hero Group</keyword>’s Chairman Pawan Munjal has invested an undisclosed amount into car servicing startup GoMechanic. Munjal’s investment is a part of the Series B round raised by GoMechanic where they have already raised $15 million from Chiratae Ventures, Sequoia Capital and Orios Venture Partners. Munjal’s investment is in his personal capacity, similar to how he has invested in Ola Electric. “We had been in talks with the investment team of Mr Munjal, and we couldn’t have asked for a better partner – an industry veteran with years of experience and standing in the market,” Amit Bhasin, co-founder of GoMechanic told Business Insider. GoMechanic has 280 technology-enabled multi-brand network of car service centers and workshops across twelve cities in India. The four-year old startup has big plans for the year despite the pushback from the coronavirus pandemic. “Currently we service anywhere close to 15,000 cars a month. We will be hitting those numbers by next month, right now we are at 80% of the pre covid numbers, By December, we aim to double these numbers,” said Bhasin. <div type="image" title="gomechanic" msid="76436928" hostid="261" caption="&amp;lt;p&amp;gt;GoMechanic co-founders Amit Bhasin and Kushal Karwa&amp;lt;/p&amp;gt;"></div> During the lockdown, the founders only saw the need for such a service. They now plan to expand to more Tier 2 cities. “Ours is a technology-first place which also gives us the opportunity to scale much faster. Tech ensures that the brand experience remains constant while we scale cities in a very cost effective manner,” said Kushal Karwa, cofounder of the company. The startup has also redesigned its operations due to the coronavirus pandemic. “We have invested heavily in technology to reduce human interactions. Currently, most of our orders are being done with the pick up and drop model, while all the updates are available on the app,” said Bhasin. But they are also aware of the future – electric vehicles. The startup has partnered with Revolt Bikes, which produces EV bikes, and is the default after sales workshop for them which includes – repair and services, swapping of batteries. They had also brought on board Suyash Kumar, who was the eMobility business lead for Ashok Leyland and is now leading the startup’s EV strategy and plan. “We have also partnered with companies to set up EV charging stations within our workshops,” said Karwa. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/kavin-bharti-mittal-unveils-the-cool-new-hikeland-that-includes-a-virtual-movie-theatre-for-the-post-covid-world/articleshow/76419525.cms">Kavin Bharti Mittal unveils the cool new HikeLand – that includes a virtual movie theatre for the post COVID world</a> <a href="https://www.businessinsider.in/business/startups/news/airtel-makes-its-first-bet-in-education-acquires-a-10-stake-in-edtech-startup-lattu-kids/articleshow/76423574.cms">Airtel makes its first bet in education – acquires a 10% stake in edtech startup Lattu Kids</a>

EXCLUSIVE: Hero Group Chairman Pawan Munjal invests in car servicing startup GoMechanic

<ul><li>Latest estimates from the Rhodium Group say that the emissions of greenhouse gases from China crossed that of the world’s largest polluter, the United States, in 2019 itself.</li><li>China curtailed its factories to cut back carbon emissions and despite that, its steel production broke a new record in April 2021.</li><li>If the carbon emissions from China are already worse than developed economies, it could mean more production curbs in the country in the near future.</li><li>That could result in higher prices for Indian steel makers who are trying to bridge the global supply gap.</li></ul><keyword id="6357147" type="COMPANY" weightage="20" keywordseo="tata-steel">Tata Steel</keyword>, one of India’s top steel makers, has seen its profit balloon nearly eight times in the last one year, and its share price four times. The story is similar for many of its peers too. The party in Indian metal stocks could continue if shareholders consider the estimated emissions from China. Latest estimates from the Rhodium Group, a think tank that watches China closely, says that the emissions of greenhouse gases from China crossed that of the world’s largest polluter, the United States, <a href="https://rhg.com/research/chinas-emissions-surpass-developed-countries/">in 2019 itself</a>. <div type="image" title="China GHG emissions 2019" msid="82451121" hostid="261" caption="&amp;lt;p&amp;gt;Top eight emittors of greenhouse gases in the world in 2019&amp;lt;/p&amp;gt;"></div> Now, over the last one year, the US and Europe are in rebuilding mode as the global economy slowly opened up after the first wave of the COVID-19 pandemic subsided. At the same time, China curtailed its factories to cut back carbon emissions. Tangshan, in China’s Hebei province, is a large hub that produces <a href="https://www.argusmedia.com/en/news/2211280-imports-other-regions-fill-tangshan-steel-supply-gap">over 144 million tonnes of steel in a year</a>. Beijing has ordered to bring that down by 30% to 50% and, then, extended the cut to the end of the year. When a major producer of steel cuts back output, others, outside of China, may gain from rising prices. Despite that, China Iron &amp; Steel Association (CISA) <a href="https://www.metalbulletin.com/Article/3986184/Cisa-member-mills-crude-steel-output-hits-record-high-in-mid-April.html">data</a> showed that steel makers in China broke a new production record in April 2021. Every tonne of steel produced in 2018 emitted on average 1.85 tons of carbon dioxide according to an estimate from McKinsey, an international consulting firm. If the carbon emissions from China are already worse than developed economies, it could mean more production curbs in the country in the near future. That could result in higher prices for Indian steel makers who are trying to bridge the global supply gap. “We estimate steel margins to peak in Jan-March 2022 and moderate to sustainable levels,” said a Kotak Institutional Equities report on Tata Steel dated May 7. Shareholders of Tata Steel, which is up 300% in the last one year ⁠— and at an all-time high ⁠— may have more gains to look forward to. It is not just steel, China’s curbs on factories have helped makers of other miners and metal products too. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Stock </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Gains in the last one year </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata Steel </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">311% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">JSW Steel </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">330.14% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hindalco (India’s largest aluminium maker) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">230.3% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">SAIL (State-owned steel maker) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">383.27% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">NMDC (India’s largest iron ore miner) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">136.78% </td></tr></tbody></table> However, a word of caution is warranted. The same report shows that India, too, has seen a sharp rise in carbon emissions in recent years. The country had emitted more greenhouse gases than all of Europe at the end of 2019. If that was the downside to the environment due to increased production of steel in India, the rising price of steel is a big blow for sectors like automobiles, infrastructure construction, and real estate, which buy steel in bulk. Companies like Maruti Suzuki, Mahindra and Mahindra, and Tata Motors have already been squeezed between a fall in demand for cars and rising prices of key inputs. The cheer of a demand revival post the monsoon of 2020 was cut short by the second wave of the pandemic and the rising cost of making vehicles. Any further rise, without <a href="https://www.businessinsider.in/business/auto/news/maruti-will-take-on-mm-hyundai-and-kia-in-suv-segment/articleshow/82370751.cms">the ability to hike the price of cars</a>, may further squeeze profit margins. The same would hold true for makers of trucks and buses too. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Car maker </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Loss of share value in last three months </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Force Motors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-17.1% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ashok Leyland </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-13.5% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">M&amp;M </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-12% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Maruti Suzuki </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-10.6% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata Motors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.7% </td></tr></tbody></table> Real estate developers in India have a similar problem. Rising prices of cement and steel over the last one year have compounded the problem. The increasing uncertainty over livelihoods and the future of industry and employment had already <a href="https://www.indiatoday.in/business/story/real-estate-sector-hit-as-covid-disrupts-housing-sales-project-launches-1798377-2021-05-03">reduced the number of buyers in the market</a>. Companies like DLF, Godrej Properties and their peers may watch commodity prices closely in the days to come. “The sudden and continuous upsurge in prices of steel, cement and other key raw materials used in construction has massively increased the overall construction cost for developers. This is a huge burden for all players - but again, it is the smaller, cash-starved builders who are most affected,” Akash Pharande, Managing Director of Pune-based developer Pharande Spaces, said in a statement. “Unchecked construction costs ultimately impact project deliveries and result in stalled projects in many cases… Developers are challenged to incorporate the additional construction costs without adding further to the burden of their customers,” he added. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Stock </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Loss of share value in last 3 months </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">DLF </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-15.2% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Godrej Properties </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-10.7% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Oberoi Realty </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-4.5% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Phoenix Mills </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-5.6% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Prestige Estate </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.17% </td></tr></tbody></table> SEE ALSO: <a href="https://www.businessinsider.in/india/news/there-will-be-three-flights-from-india-to-australia-starting-may-15-for-the-estimated-9000-people-looking-to-return/articleshow/82450220.cms">There will be three flights from India to Australia starting May 15 for the estimated 9,000 people looking to return</a> <a href="https://www.businessinsider.in/business/startups/news/heres-why-zomato-is-reportedly-cutting-a-300-million-cheque-for-grofers/articleshow/82450062.cms">Here’s why Zomato is reportedly cutting a $300 million cheque for Grofers</a> <a href="https://www.businessinsider.in/stock-market/news/yes-bank-shares-are-cheaper-than-what-they-were-a-year-ago-and-what-could-revive-the-investment-if-at-all/articleshow/82448509.cms">Yes Bank shares are cheaper than what they were a year ago — and what could revive the investment, if at all</a>

China has broken another emissions record ⁠— and it is good news for some Indian companies

After the <keyword id="6354977" type="ORGANIZATION" weightage="100" keywordseo="Supreme-Court">Supreme Court</keyword> ordered ban on sale and registration of BS-III compliant vehicles effective from April 1, automobile manufacturers in India started to <a href="http://www.businessinsider.in/transportation/sc-ban-forces-vehicle-makers-to-offer-heavy-discounts-on-bs-iii-vehicles/articleshow/57916219.cms">offer heavy discounts </a>to get rid of the existing stock. Even then, they have unsold stock of more than 140,000 BS-III compliant vehicles worth Rs 5,633 crore. 
 
Also read: <a href="http://www.businessinsider.in/sc-ban-on-bs-iii-vehicles-will-cost-the-auto-industry-nearly-rs-12000-crore/articleshow/57911677.cms">SC ban on BS III vehicles will cost the auto industry nearly Rs 12,000 crore</a> 
 
India’s leading commercial vehicle manufacturers, including <a href="http://http://www.businessinsider.in/transportation/cars/tata-motors-compact-sedan-tigor-launched-for-rs-4-7-lakh/articleshow/57893428.cms">Tata Motors</a>, Ashok Leyland, <a href="http://www.businessinsider.in/enterprise/Mahindra-profits-with-new-SUVs-and-trucks/articleshow/52515921.cms">Mahindra &amp; Mahindra</a> and VE (Volvo-Eicher), along with two-wheeler makers like Hero MotoCorp, Honda Motorcycle &amp; Scooter India (<keyword id="121221" type="ORGANIZATION" weightage="100" keywordseo="HMSI">HMSI</keyword>) and <keyword id="62356" type="COMPANY" weightage="100" keywordseo="TVS">TVS</keyword> Motor Company, all have unsold inventory of BS-III compliant units across their outlets. 
 
Also read: <a href="http://www.businessinsider.in/half-a-dozen-international-car-makers-are-hoping-to-enter-the-indian-market-heres-why/articleshow/56330778.cms">Half a dozen international car makers are hoping to enter the Indian market. Here’s why</a> 
 
After receiving the order on March 29, these automobile makers offered <a href="http://www.businessinsider.in/transportation/cars/automakers-offered-megadiscounts-and-freebies-to-get-rid-of-bs-iii-stocks/articleshow/57960077.cms">hefty discounts </a>of upto 50% for remaining two days of March 31. The offers attracted several buyers, even as they made these companies suffer losses of around Rs 1,200 crore. 
 
Now, they have two options left; either to export these vehicles to markets that still conform to BS-III norms, or to bring back the vehicles to factories and upgrade them to BS-IV standards. The latter, however, would be a much-expensive process as compared to the former. 
 
(Image source M&amp;A Critique)

Indian automakers still have unsold stock worth Rs 5,633 crore of BS-III vehicles

The modern Corporation owes its origin to the Joint Stock Companies of Great Britain which marked the aggregation of capital without the liability or risk to stockholders apart from loss of capital employed and marked the shift from an agrarian - revenue yield based economic-governmental model to a Mercantilist-Industrial-tax based one. The capital accumulated was utilized in buying land for factories, erecting buildings to house the machinery. These were mainly the company property due to which the whole body of accounts, tax and accounting standards has concepts of movable and immovable property as the above fell mainly within these brackets. With the advent of the knowledge revolution which can be said to start with computing industry and its allied fields, a new form of property came into being. Incorporeal property called Intellectual Property which might or might not have material physical manifestation or product but which recognized the “intellectual capital” and “intellectual labour”. Due to the economics of outsourcing the modern corporations maybe behemoths in turnover but in many cases are mere repository of Intellectual Property which they license to manufacturers or franchisees. And Intellectual property of an <keyword id="6354427" type="CITY" weightage="20" keywordseo="Apple">Apple</keyword> is no less valuable because its goods are manufactured by a Foxconn in China. The “Brand” built due to valuable intellectual property has a recall value and people associate “Brands” with certain qualities and attributes which are unique. Thus the “Brand” and by “Implication” the Intellectual Property has to be protected. A “GULF” or an “Ashok Leyland” brand name for instance does give a consumer a comfort of track record, quality, integrity, after sales service and support and value for money. Bulk of modern day property and wealth is intellectual and needs to be protected. Intellectual capital is created by expending intellect by Employees who work for these corporations as inventors, designers etc. There lies the paradox of the basic framework of Contract Act , Criminal Law and Evidence Act being Victorian in vintage (“Touch” “Feel” “See”) while the economy and its concepts have moved on rapidly (“click” “Share” “Upload”). While the Contract Act has a jaundiced view towards an agreement in restraint of Trade and profession, such a restraint is key to companies who bear costs of research and development carried out by their employees and the fruits of whose intellectual Labour should be for the Company to “pluck”. If there is to be a “reasonable” restraint, what constitutes “reasonable”? The basic employment contract makes it mandatory for the employee to maintain confidentiality of Company data and information. This is because information and data are valuable Intellectual Property for the Company. Any action that would jeopardize its secrecy would be against Company interest. Would a mail sent by an employee from his official mail address to his personal e-mail address be construed as a breach? After all the personal mail server can be hacked and the data maybe exposed to theft. How careful is “really” careful? Recent instances have brought the spotlight on this aspect. Was Hillary Clinton justified in using her personal mail servers while she was Secretary of State? There are no white or black answers. It is “yin” and “yang” where the black has a white but the white may also have a black! The sensible thing to do would be to not be in a position where any adverse implication may be drawn unless there are cogent reasons for doing so. “Caesar’s wife must be above suspicion” and a person should not put himself /herself in a position where duty and interest is even seen to be conflicting. <keyword id="6373689" type="ORGANIZATION" weightage="20" keywordseo="Cloud-computing">Cloud Computing</keyword> makes storage and sharing and access very convenient but has the potential of being hacked. In this case whose is the liability? Can the provider escape liability if he demonstrates duty of care and to what extent? Indian Courts have been sensitive and have evolved concept by judicial pronouncements to plug any gaps in legislation. Classic case of the above is the “Ashok Kumar” order [called as “John Doe” in English speaking countries] given in Indian by courts to protect telecast rights of sporting events against unknown infringers of copyright. This has evolved to tackle the factum of unknown infringers of copyrights and necessity of a blanket order from the court to enable seizing material evidence before it is destroyed and to stop infringers of IPR. Again this has arisen because in classic adversarial litigation, you need a known infringer/defendant and even though the evidence can be irretrievably erased by pressing a “delete” button, the burden or onus of proving the case beyond reasonable doubt has not lightened due to the nature of the infringement or criminality being intellectual. This is indeed an exciting time as we can see law being evolved and created to match the advances in technology and commerce. (The article is authored by Mayoor Godbole - In-house Counsel, <keyword id="120582" type="CITY" weightage="20" keywordseo="Hinduja-Group">Hinduja Group</keyword>)

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