A day after the Supreme Court banned sale and registration of BS-III vehicles, two-wheeler majors Hero MotoCorp and Honda Motorcycle have offered discounts of up to Rs 12,500 on such models to liquidate stocks.
Earlier on Wednesday, the Apex Court banned sale and registration of all vehicles not complying with Bharat Stage IV or BS-IV emission norms from April 1, 2017. The court verdict jolted the auto industry which was saddled with an inventory worth Rs 20,000 crore.
As per the apex court's ruling, around a million vehicles, including 7.51 lakh two-wheelers, cannot be sold after March 31 due to BS-IV non-compliance.
According to the Society of Indian Automobile Manufacturers (SIAM), the manufacturers have a total stock of 8,24,275 BS-III-compliant vehicles.
With less than two days to go before the deadline, the two-wheeler majors are trying to sell as many units as possible by offering heavy discounts on BS-III vehicles.
Hero MotoCorp is offering discounts of up to Rs 12,500 on its BS-III two-wheelers. The company is offering rebate of Rs 12,500 on its scooters, Rs 7,500 on premium bikes and Rs 5,000 on entry level mass market motorcycles, according to dealers.
On the other hand, the number two player Honda Motorcycle and Scooter India (HMSI) is offering a straight discount of Rs 10,000 on its BS-III scooters and motorcycles.
Both the companies said the offer will be valid till stocks last or up to March 31. After the ban, Hero MotoCorp and Honda Motorcycle and Scooter India were believed to be the biggest losers in the two-wheelers market.
Earlier, the Ministry of Road Transport and Highways had issued a draft notification, making BS-IV-compliant vehicles mandatory across the country in a phased manner from April 1, 2017, without mentioning any date of registration.
Automakers had suggested that the April 1 deadline was meant to stop manufacturing of BS-III vehicles, and not their sale and registration.
The manufacturers also argued that in 2005 and 2010, when the industry had switched to BS-II and BS-III, respectively, they were allowed to sell their stocks with old emission norms. Likewise, they should be able to sell their old stocks this time as the new technology is duly introduced.