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<keyword id="6357252" type="COMPANY" weightage="20" keywordseo="Hero-MotoCorp">Hero MotoCorp</keyword> and <keyword id="164610" type="UNKNOWN" weightage="20" keywordseo="Honda-Motorcycle-and-Scooter-India">Honda Motorcycle and Scooter India</keyword> (HMSI), both leading players of the <keyword id="4358580" type="UNKNOWN" weightage="20" keywordseo="two-wheeler-market-in-India">two-wheeler market in India</keyword>, are offering discounts up to Rs 12,500 on BS-III models so that some stock can be liquidated before <a href="http://www.businessinsider.in/sc-bans-sale-registration-of-non-bs-iv-compliant-vehicles/articleshow/57892438.cms">Supreme Court</a> bans sale and registration of such vehicles from April 1. 
 
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> 
 The ban affects over 8 lakh <keyword id="4283805" type="UNKNOWN" weightage="20" keywordseo="BS-III-Vehicles">BS-III vehicles</keyword>, out of which 6.71 lakh are two-wheelers, resulting in heavy losses to the two-wheeler industry. This has forced dealers to offer discounts that one has never heard of in this competitive industry. 
 
While market leader <a href="http://www.businessinsider.in/Hero-MotoCorps-Haryana-plants-face-the-brunt-of-Jat-reservation-stir/articleshow/51107956.cms">Hero MotoCorp</a> is offering discounts of up to Rs 12,500 on such vehicles depending on the segment; <a href="http://www.businessinsider.in/Guess-what-Honda-to-unveil-10-new-models-and-4-new-concepts-at-Delhi-Auto-Expo/articleshow/50719775.cms">HMSI</a>, which stands at the second spot, is offering a straight discount of Rs 10,000 on its BS-III scooters and motorcycles. 
 
Also read: <a href="http://www.businessinsider.in/Sunil-Munjal-quits-from-the-role-of-Hero-MotoCorp-MD/articleshow/53433444.cms">Sunil Munjal quits Hero MotoCorp</a> 
 
The dealership community had asked for some relief from SC in the form of more time to sell their stocks, but the apex court was in no mood to compromise with its decision. 
 
The fate of remaining unsold vehicle would be decided once the deadline is over. 
 
(Image source: Wikimapia)

SC ban forces vehicle makers to offer heavy discounts on BS-III vehicles

Leading commercial <a href="http://www.businessinsider.in/Indian-auto-industry-targets-to-create-6-5-crore-jobs-in-next-ten-years/articleshow/55470540.cms">vehicle makers of India</a>, such as <keyword id="42747" type="CITY" weightage="20" keywordseo="Tata-Motors">Tata Motors</keyword>, <keyword id="6357085" type="PERSON" weightage="20" keywordseo="Ashok-Leyland">Ashok Leyland</keyword> and <keyword id="6357096" type="COMPANY" weightage="20" keywordseo="Mahindra-Mahindra">Mahindra &amp; Mahindra</keyword>, along with and two-wheeler majors Hero MotoCorp, Honda and TVS will have to bear the brunt of <keyword id="6354977" type="ORGANIZATION" weightage="20" keywordseo="Supreme-Court">Supreme Court</keyword>’s <a href="http://www.businessinsider.in/sc-bans-sale-registration-of-non-bs-iv-compliant-vehicles/articleshow/57892438.cms">ban on BS-III vehicles</a>. 
 
The ban, which will be implemented from April 1, would leave the Indian auto industry with a near-junk inventory worth over Rs 12,000 crore. 
 The ban will disallow sale and registration of all <keyword id="4283805" type="UNKNOWN" weightage="20" keywordseo="BS-III-Vehicles">BS-III vehicles</keyword> from April 1. 
 
Vehicle dealers will also have to face inventory holding costs and possible delays or defaults in bank loans that they had taken to buy stocks. 
 
To avoid these losses, the companies had asked to be allowed selling the existing BS-III vehicles that had already been made and dispatched to dealers. However, SC did not compromise with its decision, which would result in less pollution and more efficiency. 
 
Also read: <a href="http://www.businessinsider.in/This-is-how-auto-makers-and-startups-are-teaming-up-to-bring-out-biggest-innovative-ideas/articleshow/54918782.cms">This is how auto makers and startups are teaming up to bring out biggest, innovative ideas</a> 
 
As on March 20th, the total inventory of commercial vehicles, two-wheelers, three-wheelers, and passenger vehicles combined was 8.24 lakh units; while some would have been sold, a major share of this number would go junk April onwards. 
 "Auto industry, anywhere in the world, requires a stable and predictable policy which allows for long-term planning and investments," said <keyword id="2326915" type="ORGANIZATION" weightage="20" keywordseo="Society-of-Indian-Automobile-Manufactures">Society of Indian Automobile Manufactures</keyword> (<a href="http://www.businessinsider.in/markets/budget2016/manufacturing/auto/SIAM-wants-Excise-Duty-on-Large-Cars-and-SUVs-slashed/articleshow/50996481.cms">SIAM</a>) president Vinod Dasari. 
 
Also read: <a href="http://www.businessinsider.in/car-base-models-to-have-airbags-ABS-speed-warning-systems/articleshow/52552702.cms">From 2018 on, all car models in India to have airbags, ABS &amp; speed-warning systems</a> 
 
What’s surprising is that even as commercial vehicle makers knew that BS-III vehicles could be banned from April, they kept on manufacturing these vehicles. 
 
Now, they are left with only a few options, like upgradation of vehicles to BS-IV (if possible), or exporting them to countries that accept them. Both measures mean a good amount of cash outflow. 
 
(Image source: India Ink)

SC ban on BS III vehicles will cost the auto industry nearly Rs 12,000 crore

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

<a href="http://www.businessinsider.in/Maruti-Suzuki-is-shifting-focus-to-safer-vehicles/articleshow/58106625.cms">Maruti Suzuki</a>'s Gujarat plant, wholly owned by <keyword id="111052" type="CITY" weightage="100" keywordseo="Suzuki-Motor">Suzuki Motor</keyword> Corporation from Japan, might get a fresh investment of 100 billion yen from its owners to build a new assembly line. It was in Feb 2017 that the <a href="http://www.businessinsider.in/Maruti-Suzukis-car-manufacturing-unit-in-Gujarat-will-be-producing-10000-Balenos-this-FY/articleshow/56170090.cms">Gujarat</a>-based plant commenced production with an initial annual capacity of 2.5 lakh units. <a href="http://www.businessinsider.in/-970-million-to-be-invested-by-Suzuki-motors-in-second-production-line-in-Gujarat-Report/articleshow/55240801.cms">The plant</a> would see an addition of two lakh units once the new assembly line is installed. 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> Last financial year, Suzuki sold over 2,918,093 units, more than half of which was clocked by <a href="http://www.businessinsider.in/Seven-of-Indias-top-ten-selling-cars-are-from-Maruti-Suzuki/articleshow/53907838.cms">Maruti Suzuki</a>.

Maruti Suzuki might get an investment of 100 billion yen for a new production line

American multinational automaker <a href="http://www.businessinsider.in/Ford-CEO-reveals-his-companys-plan-to-get-cars-to-hit-54-miles-per-gallon-by-2025/articleshow/58306987.cms">Ford</a> has announced sacking of around 1,400 employees from its offices in North America and Asia Pacific. However, the <a href="http://www.businessinsider.in/Ford-plans-to-cut-10-global-staff/articleshow/58693452.cms">global job cut</a> is not likely to have a major effect on its Indian operations. While offering voluntary packages for job cuts, the company said that it plans to reduce 10% of its salaried costs and personnel levels in North America and Asia Pacific. Also read: <a href="http://www.businessinsider.in/Government-calms-down-fears-about-loss-of-IT-jobs/articleshow/58713975.cms">Government calms down fears about loss of IT jobs</a> "We expect 1,400 salaried positions to be affected and for people to depart by the end of September," <keyword id="6355174" type="CITY" weightage="100" keywordseo="Ford">Ford</keyword> said in a statement. The full details of the separation programmes would be communicated to employees in early June. 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> Ford stated that it has exempted its product development, financial services, manufacturing, IT, global data and analytics arms from these job cuts; most of the company's <a href="http://www.businessinsider.in/Ford-India-to-stop-manufacturing-Ecosport-for-the-European-Market/articleshow/51525346.cms">operations in India</a> are in the exempted categories.

Ford's global job cut not to have a major impact in India

<ul><li>The government is investing ₹94 billion to push eco-friendly cars. </li><li>Incentives of up to ₹5 million will be offered. </li><li>Up to 25% subsidy to be offered for parts manufacturers.</li></ul>The Indian government is planning a ₹94 billion scheme for electrical and hybrid vehicles and may offer incentives ranging from ₹30,000 to ₹5 million to those buying electric vehicles. The<a href="https://energy.economictimes.indiatimes.com/news/power/centre-plans-rs-9000-crore-sops-to-push-eco-friendly-cars/64153472"> scheme</a> will be for citizens who stop using old <keyword id="6367091" type="UNKNOWN" weightage="20" keywordseo="petrol">petrol</keyword> or <keyword id="6356109" type="UNKNOWN" weightage="20" keywordseo="diesel">diesel</keyword> vehicles and will be followed by SOPs for manufacturing parts, such as motors, in the country. According to the <a href="https://energy.economictimes.indiatimes.com/news/power/centre-plans-rs-9000-crore-sops-to-push-eco-friendly-cars/64153472">Economic Times</a>, the same SOPs will be available to individuals who give up their pre-BS III vehicles for <keyword id="6358835" type="UNKNOWN" weightage="20" keywordseo="Electric-cars">electric cars</keyword>. A certificate from an approved scrapping needs to be submitted to avail the offer. The government is also planning to spend about ₹10 billion for setting up charging stations across the country. Cab aggregators and bus owners are expected to get SOPs of up to ₹150,000 to ₹250,000 for vehicles that cost up to 1,500,000. Below is the breakdown: 
	
	
	<div type="image" title="subsidy" msid="64176616" hostid="261"></div>





 The department of heavy industries (DHI) has submitted a proposal to have at least one charging point in every nine square kilometres in all metros and major cities. There are also plans to set up charging points on both sides of the highway at every 25 km, along the Delhi-Jaipur, Delhi-Chandigarh, Chennai-Bengaluru, and <keyword id="6501329" type="LOCATION" weightage="20" keywordseo="mumbai-pune">Mumbai-Pune</keyword> stretches. In order to reduce the cost of electric vehicles and make them affordable for the general public, the Indian government reportedly plans to spend about ₹58 billion. The incentive being offered will cover over 500,000 electric vehicles and over 80% of these will be two and three-wheelers. The government has also proposed to provide up to 25% subsidy special capital investment to manufacturers of motors, drive, powertrain, and controllers. <a href="https://energy.economictimes.indiatimes.com/news/power/centre-plans-rs-9000-crore-sops-to-push-eco-friendly-cars/64153472">According to an Economic Times report,</a> if the same amount was put in improving public transport by deploying buses and running them on cleaner fuel, at least five million eco-friendly busses could be run across the country.

Indian government may reward people for dumping petrol/diesel vehicles for electric cars

Two-wheeler market leader <keyword id="6357252" type="COMPANY" weightage="20" keywordseo="Hero-MotoCorp">Hero MotoCorp</keyword> today said it has "almost" sold out all of its BS-III inventory ahead of the <keyword id="6354977" type="ORGANIZATION" weightage="20" keywordseo="Supreme-Court">Supreme Court</keyword> imposed ban on such vehicles kicking in tomorrow, according to a <keyword id="6367495" type="COMPANY" weightage="20" keywordseo="PTI">PTI</keyword> news report. 
 The company had offered discounts on its BS-III scooters and motorcycles to up to Rs 12,500 in order to liquidate the stocks. "In the past two days, we have taken tactical steps to assist our dealers and incentivise the customers with an objective to liquidate the remaining BS III stocks," Hero <keyword id="738064" type="UNKNOWN" weightage="20" keywordseo="MotoCorp">MotoCorp</keyword> Chairman, Managing Director and CEO <keyword id="87849" type="PERSON" weightage="20" keywordseo="Pawan-Munjal">Pawan Munjal</keyword> said in a statement. 
 He further said: "By the end of today, March 31, we would have sold almost all of our BS III inventory." Hero MotoCorp had switched to manufacturing only BS IV compliant vehicles since March 1 and is fully prepared to sell only BS IV vehicles from April 1, as per the order of the Supreme Court and welcomes its decision in the interest of public health, <keyword id="6320" type="COMPANY" weightage="20" keywordseo="Munjal">Munjal</keyword> added. 
 "As a public limited company, we have thereby tried to minimise the losses of all our stakeholders," he added. When contacted, <keyword id="20630" type="CITY" weightage="20" keywordseo="Honda">Honda</keyword> Motorcycle and Scooter India (<keyword id="121221" type="ORGANIZATION" weightage="20" keywordseo="HMSI">HMSI</keyword>) declined to comment. Chennai-based <keyword id="46156" type="CITY" weightage="20" keywordseo="TVS-Motor">TVS Motor</keyword> also did not comment but industry sources said their dealers have cleared most of the BS-III stocks. HMSI had offered discounts of up to Rs 22,000 and TVS 20,150 on their BS-III models after the Supreme Court banned sales and registration from April 1. Around 6.71 lakh two-wheelers, out of over 8 lakh BS-III vehicles were impacted by the Supreme Court ban. On Wednesday, observing that health of the people is "far, far more important" than the commercial interests of the manufacturers, the apex court said that automobile firms have declined to take "sufficient pro-active steps" despite being fully aware that they would be required to manufacture only BS-IV compliant vehicles from April 1, 2017.

You Searched For "BS III Vehicles" and got 7 results

SC ban forces vehicle makers to offer heavy discounts on BS-III vehicles

BI India Bureau

SC ban on BS III vehicles will cost the auto industry nearly Rs 12,000 crore

BI India Bureau

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

BI India Bureau

Maruti Suzuki might get an investment of 100 billion yen for a new production line

BI India Bureau

Ford's global job cut not to have a major impact in India

BI India Bureau

Indian government may reward people for dumping petrol/diesel vehicles for electric cars

BI India Bureau

Automakers offered mega discounts and freebies to get rid of BS III stocks

BI India Bureau

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