What will happen to unsold vehicles after BS 3 Ban ?

Based on the aim to control environmental pollution in the country, all Bharat Stage Three (BS3) vehicles has been banned from registration effective from April 1. This was came to effect as priority since the Supreme Court also confirmed to impose a complete ban on registration of vehicles from April.

Read More : BS3 vehicles banned in India from April 1

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Automobile Manufacturers Association(SIAM) estimates that 8.24 million vehicles in various categories of Bharat Stage Three (BS3) also remain in the country unsold. SIAM confirmed that none of these will no longer be sold in India in the context of BS regulations and the Supreme Court prohibited the registration of the these vehicles.

Hence the question is, what will happen to unsold vehicles after BS 3 Ban ? What are the options Automobile Manufacturers having to make profit our of this unsold inventory?

Ban is not only domestically built vehicles. According to the order of the Supreme Court, vehicles imported from abroad also comes under the BS4 regulations. Therefore, the idea to export to abroad and then put it back as expected sales in India is also not possible.

One best option to export all these vehicles to abroad where BS3 standards are not into effect. Especially dealers looking at the African countries and other small Asian countries. Already so many Automobile Manufacturers started to export some vehicles to other countries.

Second option to raise the engine standard to BS 4. But the level raising possibility is required more effort and technically complex process. It is like ‘change of heart’ for the vehicle. Most of the Automobile Manufacturers will not go for this option.

Third is to dismantle the engine into spare parts and re sell it in the spare parts industry. This also might be profitable solution since so many vehicles running in the roads is on BS3 standards , they required quality spare parts to replace the faulty ones. The best selling vehicle makers are eyeing the sector of spare parts trades due to this possibility.

In upcoming months, it is expected to get complete information on what really happen with these unsold BS3 vehicles with the Automobile Manufacturers.

Author: RoyalGuru


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