Two-wheeler majors Hero MotoCorpBSE,Honda Motorcycle and Scooter India (HMSI), Bajaj Auto and Suzuki Motorcycle are offering discounts of up to Rs 24,000 on BS-III models to liquidate stocks, a day after the Supreme Court banned sale and registration of such vehicles from April 1.
As per the apex court's ruling, around a million vehicles, including 7.51 lakh two-wheelers, cannot be sold after March 31 due to BS-IV non-compliance.
With only two days left automobile companies and dealers are scrambling to clear out such a huge inventory. As a result the companies are offering some of the biggest discounts the industry has ever seen.
For instance, Hero Splendor Plus is being offered at a Rs 5,000 discount, Hero Maestro Edge has a discount of Rs 12,500.
Honda Motorcycle, on the other hand, is offering a flat discount of Rs 10,000 on its BS III scooters and motorcycles.
The Honda CBR I50 R has a discount of Rs 24,000, the Honda Rs 22,000, Honda Activa 3G Rs 5,000 and the Honda Deo Rs 12,000.
Even TVS is offering discounts up to Rs 10,000. While the TVS Apache RTR 200 and TVS Jupiter are discounted by Rs 10,000, the TVS Victor 110 is cheaper by Rs 5,000.
Besides this, even superbikes companies are offering bikes at a massive discounts. Triumph is offering discounts up to Rs 3 lakh and Ducati discounts up to Rs 2.7 lakh.
The Triumph Thunderstorm is being offered at a discount of up to Rs 3 lakh, while the Triumph Daytona has a Rs 1 lakh discount, the Ducati Monster has a Rs 2.7 lakh and the Ducati Diavel has a discount up to Rs 2 lakh.
Bajaj Auto also offered discounts and free insurance on its different models, starting from the entry level Platina to Pulsar RS200 in the range of Rs 3,000 to Rs 12,000 along with free insurance.
"If there are any unsold inventory left, we have the possibility to export as we are a big exporter to around 70 countries across the world," Bajaj Auto President (Business Development & Assurance) S Ravikumar told PTI.
The companies said the offer will be valid till stocks last or up to March 31.
"These are unheard of discounts ever in the two-wheeler industry," Federation of Automobile Dealers (FADA) past president and Director-International Affairs Nikunj Sanghi said.
When asked about what actions were dealers taking following the apex court verdict, he said: "Our energy is focused on selling as much stock as possible before the deadline. Our people are calling up potential customers informing them about the offers."
Earlier, the Ministry of Road Transport and Highways had issued a draft notification, making BS-IV-compliant vehicles mandatory across the country in a phased manner from April 1, 2017, without mentioning any date of registration.
Automakers had suggested that the April 1 deadline was meant to stop manufacturing of BS-III vehicles, and not their sale and registration.
The manufacturers also argued that in 2005 and 2010, when the industry had switched to BS-II and BS-III, respectively, they were allowed to sell their stocks with old emission norms. Likewise, they should be able to sell their old stocks this time as the new technology is duly introduced.
Companies such as Hero MotoCorp were the most impacted by the SC verdict due to a large amount of unsold BS IV stocks. The company's lawyer mentioned to the apex court on Tuesday that the decision would result in a Rs 1,600 crore loss for the company.
Observing yesterday that health of the people is "far, far more important" than the commercial interests of the manufacturers, the Supreme Court said that automobile firms have declined to take "sufficient pro-active steps" despite being fully aware that they would be required to manufacture only BS-IV compliant vehicles from April 1, 2017.