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On 29th March, Supreme Court of India announced its decision to ban sales of BS3 compliant vehicles in the country from 1st April 2017. The decision turned out as a mayhem for dealers, as they were having stock of old BS3 vehicles and they had to anyhow clear that in about 2 days time. So, across the country, dealers of different manufacturers announced huge discounts to clear the outstanding BS3 stock.
On the same day of 29th March, in a media release TVS said – “The Honourable Supreme Court has passed an order dated 29th March, 2017 stating that only vehicles, which meet BS IV emission standards can be sold and registered with effect from 1 April, 2017. TVS Motor Company is a responsible corporate citizen and is fully supportive of a better environment for our customers, and society at large.”
“Products of TVS Motor Company are sold in over 4,000 dealer touch points across the country. All our dealers have been advised to strictly comply with the order of the Hon’ble Supreme Court and sell the BS III compliant stocks with them on or before 31st March, 2017. TVS Motor Company is fully geared up to meet the new emission guidelines and had already commenced manufacture and sale of BS IV compliant vehicles to the dealers.”
With the alluring discount schemes number of dealers managed to clear the BS3 stock, but they have to bear a huge loss owing to selling products on discount prices. TVS Motor Company has come forward in support of their dealers and paid them a total of INR 57 crores, which will compensate their losses they incurred during that period. The allocated INR 57 crores amount is from the company’s fourth quarter profits.
This definitely come out as a big surprise, not only for the dealers, but also for other OEMs, as the move is really unexpected for any organisation to settle down their dealer losses. During that time period, TVS dealers were selling their products at a huge discount of up to INR 20,000.
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