The Supreme Court on Wednesday imposed ban on the sale and registration of BS-III vehicles from April 1, 2017.
The order is a big setback for the automakers who are estimated to have total inventory of 8.2 lakh as per SIAM data. The estimated worth of these BS-III vehicles is about Rs 12,000 crore.
From April 1, only BS-IV compliant vehicles can be sold by auto companies. The bench was headed by Justices Madan B Lokur and Deepak Gupta.
As per SIAM Data, the industry has inventory of 96,000 BS-III Commercial Vehicles, six lakh 2-wheelers and 40,000 3-wheelers. The court rejected auto firms' plea over the demand for relief of six to seven months. BS -IV emission norms will come into force from April 1 this year.
The manufacturers told the court that they were allowed to sell their stocks with old emission norms on previous two occasions when the industry had switched to BS-II and BS-III in 2005 and 2010.
Reacting to the decision, Bajaj Auto MD Rajiv Bajaj said he was delighted With the SC Order on BS-III vehicle Ban. This is a signal that things are changing, Bajaj added.