Won't incur any loss due to SC ban on BS-III vehicle sales: Ashok Leyland

This is because the retro-fitment loss of around Rs 20 cr can be easily taken from the aftermarket

Commercial vehicle major Ashok Leyland said that the Supreme Court ban on the sale of BS-III vehicles will not impact the company's financial performance in any way.

Vinod K Dasari, managing director, Ashok Leyland said that the company had 10,664 BS-III vehicles, only 10 per cent of which were with the company's dealers.

Ashok Leyland dealers don't carry stocks beyond 5-7 days and function on a cash-and-carry basis.

The moment the Supreme Court order came in, the company told its dealers not to panic and assured them of its support, said Dasari after showcasing the indigenously developed Intelligent Exhaust Gas Recirculation (iEGR) technology for the BS-4 engine.

Dasari said that though it was painful, financially the company will not be impacted since the retro-fitment loss of around Rs 20 crore can be easily taken from the aftermarket.

He said the company has sold around 600,000 BS-III vehicles over the years, and that around 5-10 per cent of vehicles are replacing engines every year, which translates to around 30,000 engines an year.

"Net cost for the company will be zero," said Dasari, who claims that Ashok Leyland did not resort to any discount to clear the inventory.