Stock Market

Eicher Motors all set to mfg BS-IV compliant vehicles; see Q4 better than Q3

Mar 23, 2017 11:33 AM IST | Source: CNBC-TV18

The inventory will be at normal levels of three weeks to four weeks post April and won’t be impacted because of BS-IV norms, said Vinod Aggarwal of Eicher Motors.

Eicher Motors is set to start manufacturing BS-VI norm compliant vehicles post April 1, said CEO-VE Commercial Vehicles Vinod Aggarwal, adding that they are also not too perturbed about the inventory levels.

The inventory will be at normal levels of three weeks to four weeks post-April and won’t be impacted because of BS-IV norms, said Aggarwal.

The company has not provided any special discounts for the sale of BS-III compliant vehicles in March, said Aggarwal, adding that fourth quarter seasonally has been a strong quarter for them. This year Q4 will see more growth due to pent-up demand of Q3 that was impacted by demonetisation, he said in an interview to CNBC-TV18.

The Indian automobile industry is gearing up to commence production of vehicles compliant with Bharat Stage-IV Emission norms (BS-IV) from April 1 across the country.

According to him, the new tax regime that will kick in after rollout of GST on July 1, it will benefit the consumers tax wise and so may incentivize them to buy more trucks. Moreover, there is also expectations that lot of efficiencies will come about in terms of distribution, productivity etc which would be good for the industry.

The work on adapting to different tax regime is already in progress for the company, he said.

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