India’s Dealers Want Carmakers to Buy Back Higher-Polluting Models

India’s car dealers are asking vehicle manufacturers to buy back inventories of unsold models that don’t meet the tougher emission limits taking effect next month.

Retailers say they are sitting on almost 900,000 affected cars worth 120 billion rupees ($1.8 billion), the Economic Times reports. The vehicles meet so-called Bharat Stage 3 (BS3) emission standards that will be replaced nationwide by tougher BS4 limits next month.

The Federation of Automobile Dealers Assn. says a refusal by carmakers to take back the older models will result in large-scale losses and possible dealership closures. FADA cites a “sense of panic and nervousness” among its members.

More than a dozen cities have required cleaner BS4-compliant cars since early 2010. India’s transport ministry told carmakers in 2015 they would no longer be allowed to build BS3 vehicles after this month. Last October the country’s environmental authority said the ruling also would block the sale of BS3-level vehicles beginning on April 1.

Ashok Leyland, Mahindra and Tata are among producers pushing to allow dealers to sell off remaining stocks of BS3 models. ET says Bajaj Auto and Daimler’s BharatBenz venture back the government’s sales ban.