Discounts on BS-III vehicles cause loss worth Rs 1,200 crore to automakers

The auto industry is left with a huge inventory of BS-III vehicles whose value is estimated to be about Rs 5,000 crore, informed Society of Indian Automobile manufacturers while mentioning sales figures for March 2017 and fiscal 2017. SIAM said that over 1.2 lakh units of BS-III vehicles remained unsold across India. Most of these vehicles are either commercial vehicles or two-wheelers and are a part of dealer’s inventory. Post the Supreme Court hearing last month which banned the sales and registration of all BS-III vehicles, many dealers and auto-makers were forced to clear their existing inventory and were offering huge discounts. SIAM claims that these discounts have added up to a loss of over Rs 1,200 crore.