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Tata Motors currently has around 15,000 commercial vehicles in its stock along with 3,000 in dealership inventories; around half of the entire stock would be shipped

Tata Motors is planning to export some of its unsold BS-III trucks to overseas markets, in an attempt to minimize the losses. The automaker is the largest truck and bus manufacturer in the country. Currently, it has around 15,000 unsold BS-III commercial vehicles in its stock, along with around 3,000 units in dealership inventories across the country.

With the ban on BS-III vehicle in effect from 1st April, Tata Motors can’t sell these unsold vehicles in India. Now, to reduce the loss, the company plans to export around half of these unsold stock of older-technology trucks to overseas markets. The automaker reveals that this stock of unsold trucks is exportable over 4 to 6 months with minimal change or even no change as well.

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Government of India mandated in 2015 that auto manufacturers present in the country must produce only BS-IV compliant vehicles from 1st April, 2017. But the ban imposed on selling old BS-III vehicles was not expected, but due to the order from Supreme Court automakers in the country had to stop selling old vehicles from 1st April. This led the companies to rush to offer hefty discounts on their old products and sell as much as possible old vehicles in last two days of March 2017.

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During ordering the ban on sales of BS-III vehicles, the apex court said health concerns of citizens are much more important than financial losses of the companies. However, even after offering huge discount and selling a number of vehicles, the automakers couldn’t clear out their stock completely. Specially a large number of commercial vehicles across the manufacturers are lying unsold.

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It is not sure, to which overseas markets Tata Motors will export its unsold BS-III trucks. But these markets could include a number of South East Asian markets as well as some African countries as well. The company is also considering upgrading the remaining old vehicles into BS-IV compliant machines.

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Source: ET Auto