After SC ban, buy auto on fall

Impact on carmakers not seen as significant

The stocks of Hero MotoCorp and Ashok Leyland shed three per cent each after Supreme Court banned sales of BS-III vehicles from April 1 on Wednesday. These vehicles comply with emission norms set by BS-III standards, in force since October 2010. From April 1, sales and registration of only BS-IV vehicles will be allowed, which are seen as less polluting.
 
The worst-affected from the ban will be BS-III two-wheelers and commercial vehicles, sitting as unsold inventories of 600,000 units and 96,000 units, respectively, according to estimates. The automobile industry, according to Angel Broking, has unsold BS-III inventory of 820,000