Indian Carmakers Seek to “Correct” High Court’s Vehicle Sales Ban

The Society of Indian Automobile Manufacturers has asked the country’s Supreme Court to review its ban on the sale of cars that don’t meet the country’s new BS IV emission standards, The Economic Times reports.

The ban has left carmakers and dealers with inventories of unsold new vehicles equipped with BS III-compliant engines. Manufacturers had assumed they would be allowed to sell off remaining stocks of previous-generation vehicles, as was the case when the country's BS II and BS III standards took effect.

The high court ruled that the Ministry of Road Transport had sent a “clear message” to carmakers two years ago about halting production of BS III-compliant engines by April 1. Consequently, the court banned the sale and registration of such vehicles from that date.

But SIAM says the court misconstrued a ministry memo dated March 2017, not March 2015. The group says the memo, issued three weeks before the production ban took effect, advised carmakers they could sell off stocks of BS III vehicles after April 1.

SIAM also seeks to correct the court’s assertion that moving from BS III to BS IV standards would reduce particulate emissions by 80%. The group says the actual reduction is “much less” for vehicles other than heavy commercial trucks.

Finally, SIAM takes exception to the court’s statement that a staggered phase-in of BS IV rules was for the benefit of the auto industry. The group asserts the plan was worked out with India’s oil industry to help ensure adequate supplies of cleaner fuels needed by BS IV vehicles.