Most of the auto company shares fell in afternoon deals on Wednesday after the Supreme Court ruled that no Bharat Stage III or BS-III vehicles can be sold in India beyond April 1. The Supreme Court said that even though the number of unsold stock of BS-III is small, commercial interests are not important keeping in view health concerns of the public. The Supreme Court added that right to life is more important than commercial interests and said that no registration of BS-III vehicles will be done from April 1, 2017.
Following this development, shares of automobile companies came in a sharp selling pressure during Wednesday’s session. The BSE Auto index, in a knee-jerk reaction, fell as much as 1 per cent.
Among the individual shares, Hero MotoCorp was the top loser from the auto space, down 3 per cent at Rs. 3,232. Ashok Leyland, Mahindra & Mahindra, Eicher Motors and Tata Motors were among the other losers.
The ruling pertains to a case filed by Environment Pollution Control Authority, which had sought a ban on registration of such vehicles after April 1, said that the automobile firms were having the latest technology for a long time and these should have scaled down the production of BS-III vehicles.