TVS will be taking back unsold BS3 stock from its dealers, compesates Rs. 57 crores for discounts.
The Hosur based 2-wheeler manufacturer has issued a circular to its dealers in the last week of April citing its plans of converting the old BS3 stocks to BS4. The Government of India had put a ban on the sale and registration of BS3 vehicles effective 1st April 2017.
As per the circular, TVS will be crediting the invoiced amount to the dealers once they have received the unsold BS3 stocks from the dealers, and the company will process the conversion of BS3 technology to BS4. For this process of conversion, TVS will be charging the dealers a nominal charge of Rs. 2000/- per vehicle, while the 2-wheeler manufacturer will be absorbing the other conversion costs.
The company confirms that the unsold BS3 stock is very minimal and that the Apache maker intends to export the old BS3 bikes it receives from the dealers. It’s not only TVS that has unsold stocks of BS3 inventory, Hero MotoCorp, Bajaj Auto and few other 2-wheeler manufacturers too are sitting on these unsold stocks of BS3 vehicles.
The auto industry sold about 6 lakh units, mainly 2-wheelers on the last two days of March 2017 after offering jaw-dropping discounts ranging from Rs. 10,000/- on a standard commuter bike to almost a couple of lakhs on a sportsbike. TVS provisioned Rs. 57 crores for the discounts offered on the aforementioned dates.
Convert BS3 Bikes To BS4
– TVS issues a circular to dealers detailing its plans of converting unsold BS3 vehicles to BS4
– The company will charge a nominal processing charge of Rs. 2000/- for this conversion
– TVS intends to export most of these BS3 vehicles bought back from dealers