India’s court bans sale of Euro 3-compliant vehicles

India’s court bans sale of Euro 3-compliant vehicles

India’s Supreme Court has banned the sale of vehicles that comply with the Bharat Stage (BS) 3 emission standards in the country, which is similar to the Euro 3 emission standards put in place in most European countries between 2000 and 2005. Petrol engined passenger cars in Malaysia currently most conform to minimum Euro 2 standards (some models are higher).

In the report by Reuters, the court, in its judgment which is already in effect since April 1, said health concerns of citizens took precedence over any financial losses for companies.

The country had announced back in 2015 that carmakers must manufacture only Euro 4-compliant vehicles from April 1, 2017 as they produce less pollution. However, at that time, it did not propose a sales ban of Euro 3-compliant vehicles on the very same day. Currently BS 4-compliant (or Euro 4-compliant) vehicles are sold in select states in India.

The unexpected and unprecedented move has resulted in a sharp fall in share prices of major carmakers in the country, with shares of two-wheeler manufacturer Hero MotoCorp down by 4.4%, while truck manufacturer Ashok Leyland was down 6.6% and carmaker Tata Motors’ shares dropped nearly 2%.

This is due to the vast numbers of unsold inventories, with Mumbai-based brokerage firm Angel Broking claiming more than 800,000 BS III-compliant vehicles are affected, worth about 120 billion rupees (RM8,188,419,450). “Days before the deadline, they said you cannot sell. I don’t think this much inventory can be sold off in the next couple of days,” said Vinod Dasari, president of the Society of Indian Automobile Manufacturers (SIAM) and managing director of Ashok Leyland.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Orange on Apr 03, 2017 at 2:27 pm

    Come here n sell to malaysian

    Like or Dislike: Thumb up 3 Thumb down 0
    • Operation Manager on Apr 03, 2017 at 10:13 pm

      This shown how aggresive India government/government agencies responsibility to drive india business improvement towards global competitive even affected ownland national brand. Meanwhile in Bolehland, still *encouraging:- (1)AP system: damage auto industry, (2)EEV incentives: *cheating incentives result in NO car price reduction eg.(i)Honda City2003-2017@rm90k, but India/Australia@rm60k; (ii)Honda Civic2005-2017@rm135, but India/Australia@rm76k (3)Euro2 fuel: keep selling & continue pollution in 21century (4)EV: create EV car renting business by create 1~2company benefit 1~2person over 30millions msian (5)stop all auto industry related business to compete competitive

      Like or Dislike: Thumb up 12 Thumb down 0
  • thepolygonal on Apr 03, 2017 at 2:39 pm

    Jangan banned… terus scrap (unsold ones lah… not those with owners… have to jaga hati rakyat). Not sure if Malaysia still selling any Euro 3 compliant vehicles…

    Like or Dislike: Thumb up 5 Thumb down 0
    • Ex-VGM staff on Apr 03, 2017 at 4:41 pm

      All cars sold in Malaysia comply to minimum euro 4. Even proton (but cannot sell in Europe because they already in euro 5, going 6). The problem is not the cars but the supply of petrol itself. Who supplies, why can’t change to euro 5 etc, everybody knows the answer.

      Like or Dislike: Thumb up 13 Thumb down 1
      • Albert Yong on Apr 03, 2017 at 7:18 pm

        Euro 2 fuel should be banned cause it is poison and toxic according to EU.

        But In Malaysia, all lorries and busses are owned by cronies. they refuse to use Euro 5 although freely available.

        They choose the cheaper dirty filthy Euro 2 Diesel which is Euro 2M (Euro 1.5)

        This is why we are suffocating with poison everyday.

        Like or Dislike: Thumb up 7 Thumb down 0
  • Later stuck in flip-flop changing govs bureaucracies, then only effective after 20 years.

    Like or Dislike: Thumb up 4 Thumb down 2
  • Gaviny on Apr 03, 2017 at 3:28 pm

    Poor petrol cars, even if rated for Euro 5, still pumping euro 2 fuel

    Like or Dislike: Thumb up 5 Thumb down 0
  • Bad for business. The Indian government should enforce the change gradually rather than drastically to allow the current stock to be sold out.

    Like or Dislike: Thumb up 2 Thumb down 3
    • Not a business on Apr 03, 2017 at 7:57 pm

      Why we care about business as they don’t care about our health. If you miss your car installment for unforeseen reason will they (business) care ?

      Like or Dislike: Thumb up 4 Thumb down 1
  • Jlaueh on Apr 03, 2017 at 4:36 pm

    While we in Malaysia still have the super toxic thick black smoke spewing Bas Pekerja and lorries….Seemed like we are stuck at Euro (negative)-3 standard while the rest of the world leave us behind

    Like or Dislike: Thumb up 11 Thumb down 1
    • Dun worry. In capatiland, any decision will take 20years to be enforced. By that time, MY will be in EURO10 std.

      Like or Dislike: Thumb up 2 Thumb down 3
  • Abd yet we’re mostly still using euro 2

    Like or Dislike: Thumb up 5 Thumb down 0
  • Mikey on Apr 03, 2017 at 5:01 pm

    The India’s court is doing the right by banning sale of Euro 3-compliant vehicles. If U want to do it right, do it NOW. Time is of essence.

    Like or Dislike: Thumb up 8 Thumb down 0
  • Concerned Consumer on Apr 03, 2017 at 8:10 pm

    Most car companies selling their products here didnt even care to mention which Euro standards their products complied to, except a few European brands.

    All these brands care about its their sales target and achievements. And most of these cars are the one that we ignorant Msians buy in drove.

    The G probably dont care either as our main petrol, ron 95, is only euro 2 standard. Commitment to upgrade our petrol supply to cleaner petrol kept been postponed again and again due to pressure from oil companies citing cost concerns.

    The internationally-publisiced committed target have been delayed for many occassions, almost no one know when Msia are going to implement Euro 5 petrol anymore.

    Pathetic. Every single decisions must be done in the interests of corporations creating addictive corporate welfare environment.

    When government work in the interests of big corporations, that government is called corporatocracy.

    Like or Dislike: Thumb up 5 Thumb down 0
 

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