Supreme Court Cracks Down On BS III Vehicles

After passenger cars and SUVs with big diesel engines, it's the commercial and two-wheeler segment's turn to feel the heat from the Supreme Court over emissions. However, unlike the commercial and two-wheeler market, the passenger car segment had already migrated to BS-IV barring a handful of cars.

Starting April 1, 2017, all vehicles sold nationwide need to comply with the stricter norms. Although the order came in 2015, giving automakers plenty of time to migrate to the new standards, the manufacturers are still stuck with an inventory of 8.24 lakh BS-III vehicles. 6.71 lakh of those are two-wheelers, 96,000 are commercial vehicles, 40,000 are three-wheelers, and the number of cars amounts to just 16,000.

Back in 2015, the order restricted the manufacturing of all new BS-III vehicles launched after April 1, 2016, while the existing lineup would need to be upgraded before April 1, 2017. The order intended to put a stop on the manufacturing of BS-III vehicles. The Supreme Court has recently ordered to put a halt registration of all BS-III vehicles sold after April 1 this year.

The Society of Indian Automobile Manufacturers (SIAM), has agreed to abide by the order and found that the new ruling contradicts with the initial order restricting manufacturing of BS-III vehicles post-March 31, 2017. SIAM also cited the unavailability of BS-IV compatible fuel as the reason behind allowing the sale of existing stock of old vehicles. The BS-IV vehicles are said to cause problems when used with poorer fuel. Ashok Leyland's MD and CEO, Vinod Dasari, agrees with SIAM and suggested that the BS-IV vehicles cannot run properly on BS-III fuel. Although, he claims that the effect of the ruling on Ashok Leyland will be minimal.

Daimler India Commercial Vehicles, on the other hand, claims that their trucks can continue to perform as expected even on BS-III fuel. However, on BS-IV fuel, they will return a better fuel efficiency figure while also curtailing the exhaust gases. BharatBenz already has 1,000 BS-IV trucks on the road.

Tata Motors is worst hit by the ruling and called the order 'unprecedented and unexpected'. The order is said to have a negative impact on the auto industry.

Among two-wheeler manufacturers, Bajaj Auto decided to take the lead and transitioned its entire lineup to BS-IV well before the stated deadline. By mid-Jan, the Indian manufacturer had stopped production of BS-III bikes, allowing them enough time to clear the existing stock.

The dealers left with a big inventory are already offering fat discounts on their current stock. Exports are also on the cards if the court doesn't budge from its decision. The Supreme Court will hold a hearing to discuss the matter on April 12.

Also Read: All Bajaj Vehicles Now Comply With BS-IV Norms

Supreme Court Revokes The Delhi Diesel Ban