BS-III ban: Exports only way out to get rid of unsold CVs, says Icra

SC ban leaves CV companies with unsold inventory worth Rs 5,800 cr, says the rating agency

The Supreme Court (SC) order of banning BS-III vehicles' sales two days before the actual implementation of new emission norms has left the commercial vehicle (CV) industry with an unsold inventory of 35,000-45,000 BS-III vehicles worth up to Rs 5,800 crore. 

While exports appear to be the lowest cost solution for the CV original equipment manufacturers (OEMs), clearing the unsold vehicles could take up to two quarters depending upon the model-mix and inventory ageing, according to Icra report.

It has also said that the domestic CV segment is expected to register a growth of 6-8 per cent in the financial