The Supreme Court mandated ban on sale and registration of BS III vehicles post April 1, 2017 is estimated to cost commercial vehicle manufacturers Rs 2,500 crore, according to CRISIL Research.
Commercial vehicle (CV) makers disposed of over half their stock of 96,700 BS-III vehicles valued at around Rs 11,600 crore before the Supreme Court-set April 1, 2017, deadline. As per CRISIL Research, the discounts and incentives on vehicles sold till March 31, 2017, are expected to have cost them about Rs 1,200 crore. Additionally, Rs 1,300 crore would be incurred to dispose of the unsold inventory.
The industry is expected to have sold 55 per cent of the inventory of 96,700 commercial vehicles in the last three days of March by offering discounts of 20-40 per cent on the sticker price compared with 10 per cent before the ruling. The additional discounts and incentives are expected to have cost about Rs 1,200 crore.
Of this, the truck makers are likely to bear about 80 per cent and their dealers the rest.