Chennai: There has been mixed reaction to the Supreme Court verdict banning the BS III vehicles from April, though environmentalist and auto majors welcomed the order.
Admitting that the apex court order should be respected, automobile industry Society of Indian Automobile Manufacturers (SIAM) said it was “frustrating” that the existing law allowing sale of these vehicles was ignored. “We all have to respect the Supreme Court verdict,” SIAM President Vinod Dasari said.
He said commercial vehicle makers have been producing BS IV units since 2010 but they have been selling BS III for the last seven years because of lack of fuel. Stating that as per government notification, sales of BS III vehicles were allowed after April 1, he said “now suddenly those BS III vehicles are banned. I find it quite frustrating that something like this happens.”
On the impact of the verdict, he said “there will be utter chaos in the next few days for the dealers and the finance companies which have sold BS III.” Mr Dasari, who is also the managing director of Ashok Leyland, said the company is impacted very little by the order. Ashok Leyland has been making BS IV vehicles since 2010 and has sufficient capability and capacity to make BS IV vehicles
“Contrary to the various reports in the media about Ashok Leyland having to take a huge write-off of BS III inventories, the company clarifies that in-fact the impact will be minimal. However, since BS IV commercial vehicles cannot run properly on BS III fuel – and such fuel is not available nationwide - our customers continued to buy BS III vehicles,” he stated.
Given the current demand, majority of the vehicles in the pipeline have already been sold. Some more will be sold in the next couple of days where we have customer orders. “Of the little inventory that we expect to remain beyond this, we will export them to other markets where we have significant presence and still operate on BS III norms. Finally, for any other vehicles still leftover, the company confirms that it will be able to easily upgrade them to BS IV at minimal cost,” he added.
Welcoming the ban, associate professor, department of environment and water resources engineering division, IIT Madras, Indumathi M. Nambi said, “the ban is a much needed move as vehicular population is on a steady rise. However, the ban should be implemented in a phased manner, giving time to the manufacturer. That way, it would not be a major blow to the automobile sector.”
Supporting the Supreme Court order, Bajaj Auto managing director Rajiv Bajaj said “there are some things on which you can’t put a price. This is for the future of our children. This is a matter of principle.” Although the notification says “production, not sales from April 1,” but “you have to read what is unwritten,” he said.
Toyota Kirloskar Motor vice-chairman Vikram Kirloskar said, “We have to go towards meeting global standards of emission and safety, and that is the only way forward.” Toyota Kirloskar stopped manufacturing of BS III vehicles more than a year ago and all its vehicles currently being sold in India are BS IV compliant. Two-wheeler maker Honda Motor-cycle and Scooter India said: “We respect the honourable Supreme Courts decision and confirm that all our products comply with BSIV norms.”
