The government has announced the ban on two segments of the car- Bharat Stage3 and Bharat Stage 4, and the policy will be implemented from April 1, 2017. However, companies are trying to consult the government but, till this time no response came into being. Recently, Brokerage Nomura estimated that this ban will affect both large and medium segments.

Nomura stated, "Most passenger vehicles were already BS-IV-compliant. Those affected most would be in the Medium and Heavy Commercial Vehicle (MHCV) segment, as they had the highest inventory due to a sharp 6-8% cost increase under BS-IV emission norms. This would be followed by LCVs, three-wheelers, and two-wheelers."

Nomura further added, "Conversion of existing BS-III vehicles to BS-IV standard by retrofitting is too cumbersome and given low export volumes, these products would face the risk of obsolescence if inventoried for an extended period."

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