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  • Selling BS3 vehicles should not be allowed after April 1: DICV

    Dealers offer BS3 two-wheelers at steep discount of Rs 5,000- Rs 20,000


    Just a fortnight before the registration of Bharat Stage 3 (BS3) vehicles is supposed to stop all over the country, a section of automobile industry is hoping that the deadline will be deferred or interpreted in a way that sales could continue after March 31 too.


    The Supreme Court has ordered vehicle manufacturers to disclose the number of unsold BS3 compliant vehicles still in stock as BS4 norms come into place


  • #2
    Bharat stage emission standards are emission standards instituted by the Government of India to regulate the output of air pollutants from internal combustion engines equipment, including motor vehicles. The standards and the timeline for implementation are set by the Central Pollution Control Board under the Ministry of Environment & Forests and climate change.

    While the norms help in bringing down pollution levels, it invariably results in increased vehicle cost due to the improved technology & higher fuel prices. However, this increase in private cost is offset by savings in health costs for the public, as there is lesser amount of disease causing particular matter and pollution in the air. Exposure to air pollution can lead to respiratory and cardiovascular diseases, which is estimated to be the cause for 6.2 lakh early deaths in 2010, and the health cost of air pollution in India has been assessed at 3% of its GDP.
    Standard Reference Date
    Bharat Stage II Euro 2 1 April 2005
    Bharat Stage III Euro 3 1 April 2010
    Bharat Stage IV Euro 4 1 April 2017
    Bharat Stage VI Euro 6 1 April 2020
    Table: Implementation of BS on two wheeler industry.

    Stock clearance strategies
    1. Slashed Prices: Slashing down the prices of BS III compliant vehicles is the major strategy that can be used for clearance of stock.
    2. Digital Marketing: The fastest way to communicate the discounted price is through social media network and digital marketing.
    3: Online Listing: Online listing of vehicles can be done so that people can buy the vehicles online, as registration of vehicles will be allowed for only those vehicles which were billed on or before 31st march 2017.
    4: Export: Ban of BS III compliant vehicles is applicable only in India but export of vehicles is always an option for automobile dealers and companies to get rid of the BS III stock of vehicles.

    Solution
    Hero Motocorp: The dealer won’t be liable for any losses incurred by them, as manufacturing the BS III compliant vehicles was decision of companies even after receiving the notice 6 months prior from apex court that the sale of vehicles adhering to BS III emission norms would be banned from upcoming fiscal year.
    Bajaj: The company has come to an agreement with its dealers to share 50 % liability if losses are incurred.

    Impact on automobile relevant industries
    1. Insurance: Insurance industry is promised to grow amidst this scenario as companies will be liable to pay insurance companies the full rebate even if it is distributing insurance for free to the customers.
    2. Finance: This industry is likely to earn handsome profits too as people will opt for finance as a means of payment for buying vehicles.
    3. Spare parts: Auxiliary parts sold with vehicles when they are delivered would also increase as the sales of vehicles increase.
    4. Steel: Demand for steel would simultaneously increase as companies would require to fire up production of new vehicles because the existing stock would be cleared during the ban is effective.
    5. Used vehicle: This sector will experience a decline in sales as people would prefer to buy new vehicles at discounted price.
    6. Dealers: Dealers will have to clear their stock as there would be a high pressure from companies to exhaust all the vehicles as soon as possible.
    7. Manufacturing: This industry will have to increase cash outflow as the demand for steel will increase and it will also have to invest in research & development to comply for BS IV technology.

    Conclusion
    In this scenario, customers will gain ultimately as they will get the vehicles at heavy discounted prices; & companies will have to suffice with no profit and no loss as it was imperative for them to sell all the vehicles.

    Report by
    Sahib Singh
    Krupa Sagar
    Shikhar Talreja
    Attached Files

    Comment


    • #3
      BS III

      Why this happened

      Bharat stage emission standards are emission standards instituted by the government of India to regulate the output of air pollutants from internal combustion engine equipment, including motor vehicles. The standard and the timeline for implementation are set by the central pollution control board under the ministry of environment & forests and climate change.
      Since October 2010, Bharat stage (BS) 3 norms have been enforced across the country. In 13 major cities, Bharat stage 4 emission norms have been in place since April 2010 and its enforced for whole country from April 2017. In 2016, the Indian government announced that the country would skip the BS -5 norms altogether and adopt -4 norms by 2020.
      Norms
      Bharat Stage emission standards, introduced in 2000, are emission standards that have been set up the Central government to regulate the output of air pollutants from internal combustion engine equipment, including motor vehicles.


      Difference in BS-IV and BS-VI standards

      The BS norms have been similar to Euro norms till now, and with norms after BS-IV not defined yet, we compare the existing BS-III and BS-IV norms in India with the Euro 6 norms on which India's emission norms have been set.


      Petrol Emission Norms (All figures in g/km)
      Emission Norm CO HC NOx HC+NOx PM
      BS-III 2.30 0.20 0.15 --- ---
      BS-IV 1.00 0.10 0.08 --- ---
      Euro 6 1.00 0.10 0.06 --- 0.005
      Diesel Emission Norms (All figures in g/km)
      Emission Norm CO HC NOx HC+NOx PM
      BS-III 0.64 --- 0.50 0.56 0.05
      BS-IV 0.50 --- 0.25 0.30 0.025
      Euro 6 0.50 --- 0.06 0.17 0.005

      Affected areas
      Manufactures are the pillars of the entire value chain in the automobile industry and they will have the biggest impact of the decision. The vehicle makers who started preparing for the BS – 4 vehicle in advance may not suffer much losses but those who continued manufacturing BS – 3 till the end of march may have to suffer losses.
      Some vehicle makers remained unclear on the decision to stop manufacturing as the government notification only talked about stopping of manufacturing BS-3 vehicle post march 31 while EPCA had suggested prevention of sales and registration of vehicle post march 31, which was later challenged in the supreme court of India. The last two-day rush at the dealership has come out as a positive step, at least for two – wheeler makers, as most of them will be able to exhaust 80 % of their inventory as market experts suggest.
      Most of Honda and hero dealers we spoke to said they have almost exhausted their inventories. This will certainly mitigate the amount of losses which was pegged at Rs 1200 crore.
      Though, the commercial vehicle makers are not offering much of discount but standing in queues makes sense for the buyers as the price increase in the range of 6 % to 8 %, from April 1, will be huge post implementation of BS-4.so, there has been some relief for them as well . However, LCD and three – wheeler segments will also be able to resolve the inventory issue with the help of discount.
      Affected sectors
      • Finance sectors
      This factor is affected because the companies don’t have stock of BS -4 vehicle because of which people can’t buy the product so because of this the finance sector is affected.
      • Insurance sector
      If the vehicles are not sold because of lacking of stock then there is no use of insurance, so this sector is also affected.
      • Ancillaries sector
      In this sector the positive effects comes because company have to made BS – 4 vehicles immediately so they buy the ancillaries in the bulk .
      • Fuel industry
      If this BS-4 apply then companies have to refine their fuel more because BS-4 require more refined fuel and because of that it effect the pries of fuel industry.
      • Steel industry
      The demand for flat steel products will increase as the existing stocks are cleared much earlier than they would have thought so the demand for steel will increase in terms of production in course of time.
      • Second hand auto market-
      Since the new cars are almost sold at the cost of old cars so customers will clearly prefer new vehicles so this will significantly affect the sector.

      Solution
      The norms will help in bringing down the pollution levels, it in turn will results in increased vehicle cost due to the improved technology & higher fuel prices. However, this increase in private cost is set off by saving in health costs for the public, as there is lesser amount of disease causing particulate matter and pollution in the air. Exposure to air pollution can lead to respiratory disease, which is estimated to be the cause for 6.2 lakh early deaths in 2010, and the health cost of air pollution in India has been assesses at 3 % of its GDP.
      Dealer’s solution
      High discount
      Discounts are the best way through which stocks can be cleared as to clear the maximum stocks in less frame of time.
      Advance booking
      The dealers can adopt this strategies that they can take a specified amount from customers and book the vehicle so that they can deliver their product after 31 march and clear there stock which they in there where houses .
      Exports
      The dealers can export the vehicle to that country in which BS-3 is valid, So that they can easily clear their stock.
      Extra benefits
      The dealers can adopt the strategies that they can give extra benefits to customers like providing free insurance, free accessories, free 10 lit petrol etc, So that will affect the buying effect .
      Complete outstanding orders
      The dealers can clear their orders by giving the vehicles to the people who already giving the advance payment of vehicles.

      Market share of 2 wheeler companies
      [IMG]file:///C:%5CUsers%5CDELL%5CAppData%5CLocal%5CTemp%5Cmsoht mlclip1%5C01%5Cclip_image002.jpg[/IMG]

      Porters Five force model
      Force 1 –
      Barriers to entry-
      An Average person or company can’t come and start manufacturing automobiles. International brands having Huge capital, Better technology, efficient management skills and brilliant understanding of markets have affected many automobile players. More than ever, it is becoming easier for foreign automakers to enter the Domestic market .This sector depends upon the customers need and demand fulfilment. There are other factors like
      • Time and cost of entry
      • Knowledge and Technology
      • Product Differentiation and Cost Advantage
      • Government Policy and Expected Retaliation
      • Access to Distribution Channels

      Force 2-
      Threat of Substitutes
      Rather than looking at the threat of someone buying a different car one should look at the alternatives like cabs, metro etc. More the cost more will be the chance of people switching from cars to other modes. The price of petrol and diesel also has huge impact on the decision making. Time, money, preference are the other factors that must be considered.
      • Price band
      • Substitutes performance
      • Buyers willingness
      Force 3-
      Competitive Rivalry
      Highly competitive industries tend to earn less as compared to others. The auto industry is considered to be oligopoly which helps to minimize the effects of price-based competition in market. Price based competition does not help to expand the market base especially in this industry, more in more recent times things have changed and price is the basis of competition now because of the improved efficiency of companies it has helped somewhat but has also affected the profit margins . Companies do update the design or some technical changes it sometimes affect the sales and profitability of companies on the basis of the product doing good or bad.
      • Number and Diversity of Competitor
      • Price Competition
      • Exit Barriers
      • Product Quality
      Force 4-
      Bargaining Power of Suppliers
      The automobile business is very competitive. Many suppliers rely few big automakers to buy their products. If automaker decides to switch suppliers it would be a disaster for them. As a result, suppliers are extremely susceptible to the demands and requirements of the automobile manufacturer and hold very little power. Life span of a car is very important when comes to suppliers. The longer the car is functional the more the need for spare parts are there. New products are lasting longer is a great sign for customers but not so good for suppliers.
      Force 5-
      Bargaining Power of Buyers
      The bargaining power of automakers is unchallenged. Consumers may get dissatisfied by products so they have the option to switch to different brands.

      BCG Matrix
      [IMG]file:///C:%5CUsers%5CDELL%5CAppData%5CLocal%5CTemp%5Cmsoht mlclip1%5C01%5Cclip_image004.jpg[/IMG]
      BCG matrix for Honda
      1. Question mark-

      CBR, Hornet and Navi are the new launches of Honda and are expected to do good but they got mixed reactions from market so the company is in dilemma as to increase the investments or not.
      1. Stars-
      Neo, Dio, yuva, amaze are the vehicles which are in growth stages as these are having huge demand in rural areas and Dio has a huge customer base in youth and urban regions.
      1. Cash Cows-
      Clearly Activa and shine are the two power performers for Honda which are powering it over its competitors and are deriving most of its profits.
      1. Dogs-
      Honda jazz, 70 have reached to the end of the life with it’s demand falling significantly.

      Report By
      Mukesh yadav
      Nirmal Agarwal
      Narayan Reddy
      Attached Files

      Comment


      • #4
        Bharat Stage
        (Selling BS III vehicles should not be allowed after April 1, 2017)
        Bharat Stage emission standards are emission standards instituted by government of India to regulate the output of air pollutant from internal combustion engine equipment including automobiles. The standards and the timeline of implementation are set by the Central Pollution Control Board under the Ministry of Environment & Forests and Climate changes.
        Evaluation of Bharat Stage III:-
        The first emission norms were introduced in India in 1991 for petrol vehicles. These are followed by making the catalytic converter mandatory for petrol vehicles and the introduction of unleaded petrol in the market. All Indian Standards were implemented referring to European Standards.
        • BS III was implemented nationwide in 2010 and was referred from Euro III.
        • BS IV was implemented in 2016 and is only mandatory in cities, not implemented nationwide and referred from Euro VI.
        • The government has taken a bold step of skipping BS V emission norms completely and moving on to BS VI.
        Strategies which are followed by dealers:-
        • Digital Marketing:- Dealers are using digital marketing to reach more no. of customers at one time as they have to sell their stock before 31st of march as per petition.
        • Online Selling:- Dealers can sell their vehicles through online portal which is registered till March 31, 2017 by customers.
        • Discount Price: - Cutting down the prices of vehicles of their recommended companies.

        Impact of this on relevant Industries:-
        • Insurance: - Due to reduction in cost of the vehicles the sell will increase, which will be ultimately profitable to the insurance companies.
        • Finance: - Due to increase in the transactions of buying and selling of vehicles the finance companies are also getting profit.
        • Automobile Spare parts & Tyres: - There will be increase in the sale of spare part companies as more no. of vehicles are getting on road.
        • Government Income: - Increase in the government income, as more the no. of sale of vehicles, more will be the registration and other formalities.
        Solutions of stock clearance after 31st March 2017:-
        • Export Vehicles:-Companies export their products in other countries because BS III vehicles banned in India not in all over India after March 31, 2017.
        • Dealers won’t bear losses: - Companies will provide compensation towards the loss to their dealers. So dealers won’t be bearing any risk when they will sell the vehicles at low cost.
        Report By:-
        Anusuiya Kumari Sharma
        Priyanka Shukla
        Vikash Kumar Pal


        Attached Files

        Comment


        • #5
          INTRODUCTION TO BS
          BS stands for Bharat-stage based on European regulation, 1st introduced in year 2000.
          BS-III vehicles are the vehicle having petrol powered engines whose carbon monoxide (CO) imitation level is restricted to 1.00gm/km and hydrocarbon plus nitrous oxide (HC+NOx) emission level should also not be more than 1.00gm/ km
          BS-IV- compliant vehicles must have an emission of not more than 0.75g/km of carbon monoxide (CO) and (HC+NOx) respectively. Implementation of BS-IV on all the vehicles will be effective from 1st April 2017.
          INDUSTRIES AFFECTED:
          1. Automobile industry –
          With over 8 lakh vehicles worth up to Rs 20,000 crore hit by the Supreme Court order to ban BS-III vehicles from April 1,
          1. Fuel and oil industry
          The ban on BS III vehicles, he claimed, will also affect jobs in sales and service, particularly for smaller dealers and sub-dealers
          The nation-wide rollout of BS-IV suffered a delay due to lack of availability of BS-IV compliant fuel. Oil makers had to make the necessary investment to manufacture 50 ppm ultra-low sulfur required to support BS-IV norms.
          Lack of proper BS4 fuel prevented it from selling such vehicles, nationwide. Running a BS4 vehicle with BS3 fuel can cause severe problems to some vehicles.
          1. Small service industries –
          Firm like service centre have impact on this. Since change in technology affect the system and technique of working.
          E.g. service centre of hero have to train the employees for new technology.
          PROBLEM IDENTIFICATION
          1. BS-IV is implementing due to excess emission of Carbon Monoxide (CO) from the vehicles.
          2. Clearance of BS-III vehicles from the stock of the existing inventory.
          3. Profit margin will be affected due to limited time to sell out BS-III vehicles.
          CAUSES OF PROBLEMS
          1. BS-IV is implementing from April 2017, because in the BS-III, the emission level of Carbon Monoxide was 1.00g/km that is polluting the air and hazardous to the human beings. The fixed emission level of CO as prescribed by the government is 1.00g/km. The numbers of vehicles are increasing that are using the BS-III on the streets which are resulting into the high emission level of CO.
          2. According to an order of the Supreme Court-mandated Environment Pollution Control Authority (EPCA), only BS4-compliant vehicles will be registered in the country from April this year. This has leads into the problem of clearing the stock of BS-III vehicles since the government of India has announced the last date of selling BS-III vehicles as March 31, 2017.
          3. The profits are to be affected by the quick selling of the BS-III vehicles in order to clear the stock in the company. The time given to sell out the old stock of BS-III is limited. Because the selling of the BS-III vehicles after the March 31 is banned by the government of the country.
          STRATEGIES TO BE FOLLOWED BY HERO
          • Hero MotoCorp must have to rush to sell out the stock of BS-III vehicles which has to be sold till March 31. The company must have to avail the stock to be sold out at the excessive discount rate. For example, Hero Maestro which cost about Rs.55,570 but the company has to sold at flat Rs.12,500 which will help in the stock clearance of the BS-III vehicles.
          • Hero MotoCorp has to add on to provide the home delivery of the vehicles at the discount rate as to have the clearance of the stock. The registration of the vehicle has to be provided at the home itself so the company can have old stock to be cleared at the deadline.
          • Hero MotoCorp must focus on the old customers and can assist them to get the vehicles at the lower rate than the actual price. The old customers will add on to purchase the vehicles using BS-III vehicles as to get the extra after sales services that are to be provided to them.
          • Hero MotoCorp must also introduce the exchange offers. The old vehicles can be exchanged with the new vehicles at the discount price. This will attracts the customers to get the best offers and discounts.
          • Hero MotoCorp can have the advertisements through the rally in the marketplace so that more and more customers can get to know about the discount offers the company is offering.

          SUBMITTED BY:
          Divya Jain
          Nivedita Gour
          Deepak Soni
          Attached Files

          Comment


          • #6
            BS III to BS IV

            INTRODUCTION
            The Supreme Court banned the sale and registration of vehicles which are not compliant with BS-IV emission norms from April 1 across the country. All the vehicles of Bharat Stage III are banned. Centre backed auto manufacturer since they had 8 lakh Bharat Stage III in stock. The companies had suggested the government deadline for 1 April 2017 was for stopping manufacture of BS III vehicles, and not their registration.
            BS-IV emission norm will be implemented from 1st of April while most of the manufacturers of two, three and four wheelers have started manufacturing BS IV vehicles with government notifying March 31, 2017 as the last date for manufacturing of such vehicles.
            What are Bharat stage emission rule?
            Bharat stage emission standards’ are emission standards instituted by the Government of India to regulate the output of air pollutants from internal combustion engine equipment, including motor vehicles. The standards and the timeline for implementation are set by the Central Pollution Control Board under the Ministry of Environment & Forests and climate change.
            What is the difference between BS-III and BS-IV?
            BS-III standards
            The banned BS-III emission standards were first introduced in 2005 in NCR and selected 13 cities. Later in 2010, BS-III emission norms were introduced nationwide. Emissions are tested over the India Drive Cycle (IDC).
            The emission norms led to phasing out of two stroke engines of two-wheelers. The electronic controls were also introduced keeping in view vehicular emissions.
            The emission norms helped in bringing down the level of pollution significantly whereas there were increases in vehicle cost due to improved technology.
            BS-IV standards
            BS-IV norms have also been in practice since 2010 in 13 major cities. Now, it will be followed nationwide.
            In order to comply with the BSIV norms, 2- and 3-wheeler manufacturers will have to fit an evaporative emission control unit, which should lower the amount of fuel that is evaporated when the motorcycle is parked.
            BS IV standards introduced several new requirements, including tightened NOx+HC emission limits, harmonization of the emission testing cycle and the definition of motorcycle classes with the UNECE Global Technical Regulation 2 (GTR-2).
            Beginning with BS IV standards, emissions are tested over the Worldwide Harmonized Motorcycle Test Cycle (WMTC).
            Since October 2010, Bharat stage (BS) 3 norms have been enforced across the country. In 13 major cities, Bharat stage 4 emission norms have been in place since April 2010 and it’s enforced for whole country from April 2017. In 2016, the Indian government announced that the country would skip the BS -5 norms altogether and adopt -4 norms by 2020.

            NORMS
            Bharat Stage emission standards, introduced in 2000, are emission standards that have been set up the Central government to regulate the output of air pollutants from internal combustion engine equipment, including motor vehicles.



            Impact of Bharat Stage-VI norms on Indian Auto & Auto Component Industry
            Currently, BS-IV norms are applicable in 13 major cities of the country, while BS-III norms are applicable elsewhere. As per Auto Fuel Policy 2025, BS-VI roll out was envisaged for the entire country by 2017, BS-V by 2021 and BS-VI by 2024.
            However in a bold move in January 2016, the Union Government of India decided to skip BS-V emission norms altogether and leapfrog directly to BS-VI norms by April 2020. The move to BS-VI norms from BS-IV norms will bring down NOx emissions by 25% in petrol engine vehicle and by 68% in diesel engine vehicles. PM emissions, a major component of outdoor air pollution, are also expected to come down drastically by over 80% in diesel engine vehicles.
            Technological Upgrade and Investment
            Transitioning to BS-VI norms will require significant engine technology changes including improvements in engine combustion and calibration, increased injection and cylinder pressures, NOx and PM after-treatment solutions and transitioning to electronic controls.
            New emission norms will also have to be met in all conditions and not just the ideal testing conditions. Two engine fitments will be typically required for up-gradation of passenger cars to BS-VI norms from BS-IV norms.
            1. Diesel Particulate Filter (DPF)- For reduction of PM in diesel vehicles
            2. Selective Catalytic Reduction (SCR) Module - For reduction in NOx emissions
            Due to this technology upgrade, price of petrol cars are expected to go up by Rs 20,000- 30,000 while diesel passenger vehicles’ prices may go up substantially by Rs 75,000-1,00,000. This will further reduce attractiveness of buying diesel cars (more polluting than petrol cars), with diesel fuel prices moving closer to petrol in recent times.

            SOLUTIONS FOR DEALERS
            • Providing huge discount to customers
            • By providing 0% for financing of vehicles
            • By giving free insurance and accessories
            • By clearing outstanding orders
            • By taking Advance booking
            • Offer good discount in rural areas where there is no showrooms by the canopy advertisements.







            Market share of 4 wheeler companies
            [IMG]file:///C:%5CUsers%5Cuser%5CAppData%5CLocal%5CTemp%5Cmsoht mlclip1%5C01%5Cclip_image002.gif[/IMG]

            Market share of 2 wheeler companies
            [IMG]file:///C:%5CUsers%5Cuser%5CAppData%5CLocal%5CTemp%5Cmsoht mlclip1%5C01%5Cclip_image004.jpg[/IMG] With Supreme Court’s ban on the sale of BS-III vehicles coming into effect from April 1, 2017, TVS dealers are offering attractive discounts on their BS-III stock

            TVS dealers from across the country are offering discounts ranging from Rs 5,000 to Rs 15,000 on various BS-III models, in a bid to clear their existing inventory. However, it is to be noted that these offers are valid only until the end of this month, which means you have only 2 days left to benefit from this move. In Delhi, dealers are offering a flat Rs 5,000 discount on all models. Another dealer in Chennai has slashed the price of the Apache RTR 200 by Rs 15,000 and has included a complimentary insurance as well. The TVS Victor is available at a discount of Rs 12,000 with free insurance. Other two-wheeler offerings get Rs 8,000 off along with insurance as a freebie. Some dealers in Gujarat have reduced the price by as much as 30 per cent from the ex-showroom price of all models! Few dealers in Pune are offering a flat discount of Rs 10,000 on all two-wheelers.

            Here’s a list of discounts on offer for various models across different cities:
            City Discounts Offered (Valid till 30/03/2017)
            Delhi Rs 5,000 on all models
            Chennai Rs 15,000 + Free Insurance for Apache RTR 200 4V, Rs 12,000 + Free Insurance for TVS Victor, Rs 8,000 for the rest of the models.
            Ahmedabad 30% slashed from the ex-showroom price of all models.
            Submitted by
            Mohammad Junaid Qureshi
            Sunil Kumari Coudhary
            Amit Soni
            Shivam Singh Chouhan
            Attached Files
            Last edited by Mohammad Junaid Qureshi; 04-01-2017, 12:38 AM.

            Comment


            • #7
              BHARAT STAGE EMISSION STANDARDS

              Bharat stage emission standards norms established by the Legislature of India to control the yield of air contaminations from interior burning motor gear, including engine vehicles. The models, in view of European directions were initially presented in 2000. Logically stringent standards have been taken off from that point forward. Every new vehicle fabricated after the execution of the standards must be agreeable with the directions. Since October 2010, Bharat Arrange (BS) III standards was authorized the nation over. In 13 noteworthy urban communities, Bharat Arrange IV outflow standards have been set up since April 2010 and it's upheld for entire nation from April 2017. In 2016, the Indian government declared that the nation would avoid the BS-V standards by and large and receive BS-VI standards by 2020.


              MARKET SHARE:
              Sketch1.png

              Sketch 2.png

              Sketch3.png

              Sketch4.png

              PROBLEM
              Clearance of the BS III vehicle which are in inventory.
              Petrol Emission Norms (in g/km)
              Emission Norm CO HC NOx HC+NOx PM
              BS-III 2.30 0.20 0.15
              BS-IV 1.00 0.10 0.08
              Euro 6 1.00 0.10 0.06 0.005
              Diesel Emission Norms (in g/km)
              Emission Norm CO HC NOx HC+NOx PM
              BS-III 0.64 0.50 0.56 0.05
              BS-IV 0.50 0.25 0.30 0.025
              Euro 6 0.50 0.06 0.17 0.005


              IMPACT:
              Impact on the company:
              Since the inventory of the two wheelers will not be accepted for trading by dealers and companies there will occur a huge loss to the company,
              Impact on growth:
              Since the companies faces problems there will a slowdown in the economy because of decline in profit of the companies,
              Impact on similar products
              Due to occurrence of loss in one model in vehicles will rise the price of similar product of acceptable model of two wheelers.
              Impact on automobile industry
              Impact on insurance:
              Due to the High sales in vehicles there will be an increase in the insurance which will boost the insurance industry.
              Impact on stock prices and finance of automobile companies
              Since, the companies don’t have stock of BS -4 vehicle because of which people can’t buy the product so because of this the finance sector is affected. And the finance company will find hard to get customers.
              Impact on oil and gas sector:
              Since a high quality of oil and gas is to be maintained there is a direct impact on oil and Gas sector.
              There will be a little impact on tyre and metal industry.
              Benefits to customers:-
              1. Acquiring two-wheelers and four-wheelers at high discount rates.
              2. Living in a pollution free environment.
              3. Benefits to the lower income groups to have cars or bike as the rate is low.
              4. Adoption of new changes in the automobile sector.

              SUGGESTIONS:
              Strategy that will be adopted by us in case of BS III stocks will be selling them in discount to clear the inventory and then when BS IV will come into stocks selling the same in higher rate to balance the losses.
              As the situation was given to us i.e. Hero dealer having current 1000 stocks of BS III vehicles of cost price Rs. 50,000/- which means an investment of Rs. 5 Crore that needs to be sold within 31st March 2017. The selling price of the vehicles be Rs.60, 000/-
              Now due to the urgent situation the stock of 1000 BS III vehicles need to be disposed at heavy discounts which will range from 5000-20000. Thus the profit will fall for the same. So to balance the same our dealer will adopt the strategy of disposing off BS III vehicles at discount rates and selling the new stock of BS IV vehicles at higher price to maintain the balance of profit and loss. Again heavy discounts will attract more and more customers which will help in clearing the inventory.
              Online listing of two wheelers with discount rate and proper delivery can be adopted to attract more customers. Export of two wheelers that are in inventory to neighboring countries such as Nepal, Bhutan, and Bangladesh where there is no ban of BS III vehicles.

              Submitted by:
              Tanumaya Ghosh
              Barsha Purkayastha
              Raju Thapa

              Comment


              • #8
                India in line again, not for Jio sim neither for cash from ATM but this time for Scooter, Bike and car. On March 28 Supreme Court banned the sales and registration of BS 3 complaint Vehicles from April 1. The derivation grounds to this decision started with environmental activist and lawyer MC Mehta who prayed before the apex Court regarding air pollution in Delhi.
                Bharat stage emission standards are emission standards instituted by the Government of India to control the output of air pollutants from internal combustion engine equipment, including motor vehicles.
                As per ARAI, the exhaust emissions for BS-III two-wheelers direct that the petrol-powered engine should have carbon monoxide (CO) restricted to 1.00 g/km and Hydrocarbon + Nitrous oxide (HC + NOx) emission level should also not be more than 1.00 g/km. For a vehicle to be BS-IV compliant its must have an emission not more than 0.75 g/km of CO and HC+Nox respectively. This means the engines have to be new in order to Emitless pollutants out helping in reduction of overall pollution from the exhaust. And BS 4 is we can say that updated and improved slandered of BS3.
                Difference in BS-IV and BS-VI standards

                The BS norms have been similar to Euro norms till now, and with norms after BS-IV not defined yet, we compare the existing BS-III and BS-IV norms in India with the Euro 6 norms on which India's emission norms have been set.


                Petrol Emission Norms (All figures in g/km)
                Emission Norm CO HC NOx HC+NOx PM
                BS-III 2.30 0.20 0.15 --- ---
                BS-IV 1.00 0.10 0.08 --- ---
                Euro 6 1.00 0.10 0.06 --- 0.005
                Diesel Emission Norms (All figures in g/km)
                Emission Norm CO HC NOx HC+NOx PM
                BS-III 0.64 --- 0.50 0.56 0.05
                BS-IV 0.50 --- 0.25 0.30 0.025
                Euro 6 0.50 --- 0.06 0.17 0.005
                Impact of Supreme Court decision to ban BS 3.
                The most affected industries would be oil and refineries industries now they t will need a substantial investment to upgrade. These upgrades will permit the refineries to make available fuel types that can match the BS-V and BS-VI standards.
                Second automobile industries with this decision into effect they need to progress gradually and skipping a step like BS-V might put extra pressure on the manufacturers to produce compliant vehicles.
                Third insurance sector when there would be less buyer to buy the commodities insurance sector would largely get affected.
                Finance sector with the decision to ban the sell and registration of BS 3 complaint vehicles buyers would hardly go to finance their vehicles.
                Overall manufacturing industries would suffer a lot to fulfill the norms since everything related to reduce emission level of vehicles need to be standardize and upgraded.
                Good decision regarding future
                We support this decision as this decision will impact on reducing the no of death per year due to air pollution. In 2011 according to TOI due to air pollution it recorded 6.23 million of death which costed nearly 2.89 per cent of total GDP of our country.
                Well to tackle this decision we would use following measure to sell our affected stock.
                1. Heavy discounts on various popular models to attract the customer
                2. We would export BS 3 vehicles to African as well Asian countries where norms is not yet implemented.
                3. Pre booking of vehicles and would give the customer time frame to take their product after 31st march
                4. Extra benefit to various model like gift , gift voucher free goodies chance to win high end model
                This all are the way by which we would clear our remaining stock.
                Fosters five force model.
                Force 1 –
                Barriers to entry-
                • Time and cost of access
                • Knowledge and equipment
                • Product discrimination and Cost improvement
                • Government guidelines and Expected retribution
                • admittance to Distribution Channels

                Force 2-
                Threat of Substitutes
                • Price band
                • Substitutes performance
                • Buyers awareness
                Force 3-
                Competitive Rivalry
                • Number and assortment of Competitor
                • Price opposition
                • Exit Barriers
                • Product eminence
                Force 4-
                Bargaining Power of Suppliers
                Force 5-
                Bargaining Power of Buyers
                The bargaining power of automakers is recognized. Consumers may get disappointed by products so they have the alternative to toggle to different brand.

                BCG matrix for Honda
                1. Question mark-

                CBR, Hornet and Navi are the new launches of Honda but would they survive in the market is a question marl.
                1. Stars-
                Neo, Dio, yuva, amaze are the vehicles which are in growth stage is having huge demand
                1. Cash Cows-
                Clearly Activa and shine are the two cash cows of honda.
                1. Dogs-
                Honda jazz have reach to the end of the life with it’s demand falling appreciably.

                in nearby future we would fully adhere to the norms prescribed by the government

                Press note
                "We,fully support the initiative undertaken by the government to contribute and strive towards making the earth a better place to live
                Currently,we would be offering the bikes at a reduced price thus,aiding the customer to buy the same.upto 31st march, bikes would be made affordable to even those who were never able to fulfill their dream of riding a bike .
                We,at honda have always made efforts to contribute towards satisfying our customers and serving them has always been our prime concern and we would do the same in the future by collaborating and supporting the government and making products that delight our customers

                Group member
                Randhir
                Supreeti
                sagar



                Last edited by Supreeti Tripathi; 04-01-2017, 12:57 AM.

                Comment


                • #9
                  SC bans BS3 emitting vehicles.

                  India’s motor vehicle sector accounts for concerning eighteen of the full carbon dioxide emissions within the country. Currently, there are not any standards for carbon dioxide emission limit for pollution from vehicles. Bharat|Bharat|Asian country|Asian nation} normal was introduced to possess some norms to regulate the emission level in India.
                  What ar the Asian country Stage norms:
                  BS (Bharat Stage) emission standards ar emission standards instituted by the govt. of Republic of India to manage the output of air pollutants from burning engines, as well as vehicles. European rules primarily based standards were initial introduced in 2000, that were created a lot of demanding since then. the primary emission standards were introduced in Republic of India within the year 1991 for gas and 1992 for diesel vehicles. These were followed by creating the chemical process converters necessary for gas vehicles and also the introduction of unleaded gaswithin the market.
                  A lone exception: Except Bajaj motor vehicle, all firms, as well as their association – Society of Indian Automobile makers (SIAM) – opposed the plea for prohibition the sale of their stocks and wanted a amount of 6‐7. however they weren’t provided any exceptions. The ban of BS3 norm vehicles were applicable on first April 2017.
                  Differnce in BS3, BS4 and monetary unit vi Norms:
                  Petrol Emission Norms (in g/km)
                  Emission Norm CO HC NOx HC+NOx PM
                  BS-III 2.30 0.20 0.15
                  BS-IV 1.00 0.10 0.08
                  Euro 6 1.00 0.10 0.06 0.005
                  Diesel Emission Norms (in g/km)
                  Emission Norm CO HC NOx HC+NOx PM
                  BS-III 0.64 0.50 0.56 0.05
                  BS-IV 0.50 0.25 0.30 0.025
                  Euro 6 0.50 0.06 0.17 0.005
                  Steps for Stock Clearance
                  Slashed Prices: dynamical the costs of BS-III compliant vehicles can result in clearance of stock of the dealers.
                  Advance booking: Dealers will advance book and register vehicles partially of shoppers for stock clearance and soraise customers to get the vehicles later.
                  Export: Dealers will export the BS-3 engines to Countries like Asian nation, Democratic Socialist Republic of Sri Lanka etc. and reduce its burden.
                  Extra Benefits: Dealers also can give further edges to vehicles oversubscribed before first April like free insurance, free service etc.
                  Start up Helpers: Dealers will give vehicles to writing paper, Jugnoo etc. or alternative come out firms that use BS3 vehicles and reduce their lost.
                  Engine Change: Dealers will raise the makers to vary the engine to follow the BS4 norms and reducing the damages.

                  Impact on alternative industries:
                  Insurance: The insurance trade are stricken by this call as a result of with the lesser range of auto purchase the vehicle insurance are settled.
                  OIL industry: The BS3 needed completely different plant technique of fuel and also the BS4 desires alternative refined technique of fuel. This successively can result the industry as they may got to amendment their planttechnique.
                  Dealers: Dealers can got to clear their stock as there would be a high from firms to exhaust all the vehicles as shortly as doable.
                  Manufacturing: This trade can got to increase money outflow because the demand for steel can increase and it'lleven have to speculate in analysis & development to abide by for SB IV technology.
                  Second Hand Vehicle Market: because the ban can lead to change of costs of BS3 vehicles. The second user vehicle market are affected.

                  CONCLUSION:
                  The Supreme Court aforementioned that SB‐IV trucks ar eightieth cleaner than BS III and permitting their sale would mean that they'd still begrime the surroundings for future few years. so it's a step taken for the good thing about the surroundings and to scale back the pollutants within the surroundings. {this can|this may|this can} lead to final profit for the common customers because it will decrease the value of vehicles and it'll additionally improve the surroundings

                  Reported By:
                  Rahul Bharadwaj
                  Ashish Yadav
                  Riju Hathishah
                  Attached Files
                  Last edited by rahul94; 04-01-2017, 06:28 PM.
                  http://gph.is/1jZKy4a

                  Comment


                  • #10
                    BHARAT STAGE 3 (BS III)

                    Why BS-III is happened?
                    While several automakers in India may have their own full form, BS actually stands for Bharat Stage - emission standards established by the Indian Government to limit air pollutants coming out of internal combustion engines like those found in motor vehicles. BS-III is happened because the old vehicles which is 10years olds vehicle are producing 3 times pollution in the country. The standards for the implementation are set by the Central Pollution Control Board under the Ministry of Environment & Forests and climate change. Supreme Court banning the sale of BS-III vehicles from Saturday 1st of April 2017 which is a shock decision for automobile industry.
                    Norms of BS-III
                    Since October 2010, BS III norms have been enforced across the country. In 13 major cities, BS-IV emission norms have been in place since April 2010 but it was enforced in the country from April 2017. In 2016, the Indian Government announced that the country would skip the BS-V norms altogether and adopt BS-VI norms by 2020. While, BS-III norms help in bringing down pollution level and it will increase the cost of the vehicle due to increased technology and higher fuel price.

                    Sector affected by BS-III

                    Impact on Automobile Industry
                    Commercial and Two-wheeler Vehicles would cause hard to sell their product.
                    Impact on Insurance Industry
                    Recent news for them was that this sector got boom as many vehicles have been sold within these days and had applied for insurance.
                    Impact on Fuel and Petroleum Industry
                    They can suffer with shortage of fuel during these days.
                    Impact on Spare Part Industry
                    There will be no such Impact because the part will be same they engine parts which are rarely used is to be changed.

                    Number of unsold BS-III vehicles
                    Segment of the vehicle as on 29/03/2017
                    Segment Inventory
                    Two wheeler 6,71,305
                    Commercial Vehicle 96,724

                    How a dealer is trying to overcome this situation?
                    • Dealers can sell the bike in Rs. 45,000 per bike and we will provide the servicing free for 2-3 years to them.
                    • They can export the bike outside the country like Nepal, Bangladesh etc.
                    • They can provide few coupons to avail petrol for free.
                    • They can provide cash back for 1 lucky customer of Rs. 20,000-30,000.
                    • They can provide 5-gram gold coin to 2 lucky customers.
                    • They can contact to those who are providing home delivery with bike with free customize.

                    Thanks

                    By
                    Siddharth Mall
                    Jaiprakash Maheshwari
                    Abhishek Singh

                    Comment


                    • #11
                      Bharat Stage- III to Bharat Stage- IV

                      The term ‘BS’ stands for ‘Bharat Stage’, which is an emission standard issued by the Indian government for IC (Internal Combustion) engine. These are issued to regulate pollution caused by the vehicles.

                      From April 1st 2017, Vehicles are required to comply with the Bharat Stage – IV norms, and all vehicles that run on BS- III engines are banned for sale.
                      Though BS-IV is less polluting, but it will be more difficult for the automakers to meet these norms.
                      There are currently approx. 8,00,000 of vehicles that have BS-3 engines mounted on them. This poses a great threat to the automakers as this will lead to huge losses.

                      To clear the stock, the manufacturers have provided heavy discounts to lure the consumers.
                      Many vehicles are being recalled for the modification of the engine. They will be fitted with BS-IV engines, which will lessen the loss incurred by them.
                      The customers will gain from this decision as they can buy the vehicles with heavy discounts.

                      Conclusion

                      The automaker should take steps to fit the existing vehicles with BS IV engine. They can also opt for exporting the vehicles to countries where prior emission norms are being followed.

                      By-
                      Shivank Shrivastava
                      Amandeep Tiwari
                      Simanta Das


                      Comment


                      • #12
                        What is BS?
                        This is Emission standards are instituted and governed by the central pollution control board which helps to regulate the output of air pollutants from the vehicle's engine (internal combustion engine).

                        BS or Bharat Stage are based on European regulation and were first introduced in 2000 and progressively stringent norms have been rolled out with the latest being implementation of BS IV (Bharat Stage 4) on all vehicles effective from 1st April 2017.


                        Difference in BS-IV and BS-III standards

                        The BS norms have been similar to Euro norms till now, and with norms after BS-IV not defined yet, we compare the existing BS-III and BS-IV norms in India with the Euro 6 norms on which India's emission norms have been set.


                        Petrol Emission Norms (All figures in g/km)
                        Emission Norm CO HC NOx HC+NOx PM
                        BS-III 2.30 0.20 0.15 --- ---
                        BS-IV 1.00 0.10 0.08 --- ---
                        Euro 6 1.00 0.10 0.06 --- 0.005
                        Diesel Emission Norms (All figures in g/km)
                        Emission Norm CO HC NOx HC+NOx PM
                        BS-III 0.64 --- 0.50 0.56 0.05
                        BS-IV 0.50 --- 0.25 0.30 0.025
                        Euro 6 0.50 --- 0.06 0.17 0.005


                        How a dealer is trying to overcome this situation for stock clearance
                        1. They are providing discount and cash back to consumer for two days.
                        2. Some of them had shown fake purchase and registered the vehicles so that after 1 April 2017 they can show that it is second hand vehicles which is sold.
                        3. They are also requested the manufacture to call back the vehicles with them because manufacture have way out from this problem and it will also not affect the their dealers and them to are -
                        1. They can change engine of vehicles and if they change engine also the company may incur loss below 2.5% but not more than.
                        2. They can export the banned vehicles.
                        Impact on Industries

                        Impact on Automobile Industry
                        • The two wheeler vehicle and commercial vehicle will have to suffer very hard situation because they have work on all of their product.
                        Impact on Insurance Industry
                        • This industry has shown boom in two day because there was increase in sales of vehicles due to huge discount but in long term as their will decline as there may be decline in sales of vehicles because the companies may looking for work on BS VI vehicles as the government is already mentioned by 2020 all the vehicles will be o BS VI so it may take time to launch BS VI vehicles.
                        Impact on Fuel and Petroleum Industry
                        • They have to upgrade their outlet and product also as BS IV vehicles cause some problem in engine if they use existing product.
                        • There can be shortage of fuel as the National Green Tribunal mentioned that they will stop transportation of Petroleum and Petrol Products from stage I and II.
                        Impact on Spare Part Industry
                        • There will be no such Impact because the part will be same they engine parts which are rarely used is to be changed.

                        Porter’s five force model

                        Threat of new entrants
                        • Entry barriers are high.
                        • Huge investment
                        • Capital investment is very huge in two wheeler industry.
                        • The biggest challenge is setting up sales & service center, which is very hard for a new entrant.
                        • Well established players are already existing. Threat of new entrance is Very low.

                        Threat of substitute
                        • Faces direct competition from the automobile sector.
                        • Substitute products for two wheeler industries are: – Bus, Auto, Cars and other public transports.
                        • Reasons for choosing substitutes may: – Relative quality of substitutes is higher. – Switching costs is lower. Threat of substitute is high.

                        Rivalry among competitors
                        • Price, Quality of the products plays an important role for rivalry among competitors.
                        • Methods adopted to attract customers - Discounts, availability of loans, low rate of interest and long-term warranties to attract customers.
                        • Each company in industry change the model ongoing basis to show differentiation in their competitors. Rivalry among sellers are high.

                        Bargaining power of suppliers
                        • Since they change their model on going basis they create good relationship between their suppliers.
                        • Some of the components in two wheeler industry sellers have bargaining power like Steel, Batteries, Tyres & Tube etc.
                        • The automobile supply business is quite fragmented. Bargaining power of suppliers are Low.

                        Bargaining power of buyers
                        • There are 5 to 6 big popular brands of two- wheelers are available.
                        • Nowadays people go to unique brands because of good service they provide after purchase. Bargaining power of buyers are high

                        ThankYou


                        Report by
                        Abhijith Nair , Abhinav Mishra and Sourabh Sharma
                        Attached Files

                        Comment


                        • #13

                          Following the ban on registration and sale of BS-III vehicles from April 1st Apr 2017, top commercial vehicle makers such as Tata Motors, Ashok Leyland and Mahindra & Mahindra, and two-wheeler majors like Hero MotoCorp, Honda and TVS are left with junk inventory of value over Rs12,000 crore.
                          BS-III stands for “Bharat Stage III” which is the emission standards established by the Indian government to limit air pollutants coming out of internal combustion engines like those found in motor vehicles.
                          Automobile dealers have asked companies to take back unsold inventory of BS-III vehicles. Federation of Automobile Dealers Association (FADA) said that this will eventually lead to long term losses for the dealer if the companies refuse to take back the junk inventory.

                          IMPACT ON COMPONENTS OF AUTOMOBILE INDUSTRY:

                          • Impact on Vehicle Makers:- Vehicle Makers who have started preparing for BS-IV vehicles in advance may not suffer much losses but those who continued manufacturing may have to suffer losses.

                          • Impact on Dealers:- Auto dealers started lowering their margin to ease of the inventory. The manufacturers have supported them with impressive offers that helped the dealers from any major impact.

                          • Impact on customers:- Huge opportunity for customers to procure vehicles at massive discounts. They will also escape from paying the extra cost that the vehicles will incur with the introduction of BS-IV.

                          • Impact on Automobile Market:- Two-wheeler and commercial vehicles will see a tight situation as there will be a major impact due to BS-IV implementation. There will not be much impact on sale of passenger vehicles as most of them are already BS-IV complaint.

                          • Impact on Second-hand Vehicle market:- The impact will vary from segment to segment. Two-wheelers will be hit the highest in the short term as due to heavy discounts many pre-owned buyers must have bought new bikes and scooters. In passenger and commercial vehicles there will be growth in sales due to price hike.

                          IMPACT ON SPARE PARTS AND TYRE INDUSTRY:

                          There will not be any major impact on this industry as the spare parts and tyres will remain the same for the production. The automobile companies need modification in their engine which will incur them a loss of 2.5%/unit.
                          The oil and petroleum companies have to upgrade their fuel station and their quality standards to cater to the BS-IV engines because the present fuel quality will gradually damage their engines. National Green Tribunal (NGT) directed public sector oil companies to not to use BS-I and BS-II vehicles for the transportation of petrol and petroleum products.

                          IMPACT ON INSURANCE INDUSTRY:

                          The Insurance Industry will see a boom before 1st April, 2017 as the sale of two-wheelers will be at their peak due to heavy discounts of 30-40% offered to the customers which will be fruitful for this industry for short term. By 2020, the government wants to upgrade the engine to BS-VI as they will skip BS-V which will result in the rise of automobile prices. Post this ban, this industry will suffer decline in the profits.


                          SOLUTION FOR STOCK CLEARANCE:

                          • Exports:-
                          The companies can rely on exports to the neighboring countries like Nepal, Bangladesh, Sri Lanka etc to clear their junk inventories as BS-III vehicles are still not banned in these countries.

                          • Discounts and Offers:- Dealers are providing their customers with heavy discounts and offers to clear their stock. They are also relying on the companies to buy back their inventory and provide them with BS-IV upgraded vehicles.

                          PORTERS FIVE FORCE ANALYSIS:

                          • Threats to New Entrants:-
                          Entering in this Automobile Industry is not every company’s cup of tea. This is the perfect timing for the International players to enter in the domestic market. The company should be technology driven and should have access to distribution channel.

                          • Threat of Substitutes:- Instead of purchasing a new two-wheeler or four-wheeler, people may prefer public transports and cab services. Ola recently launched Ola Bikes which could prove to be the master stroke for the company.

                          • Competitive rivalry:- There is a stiff competition in this industry because its technology driven. The Industry demands better design, technology, performance and the vehicles dynamics. This push after the ban will light a flare of cut throat competition basically in the two-wheeler segment.

                          • Bargaining power of Buyers:- Customer is the ultimate king of the market. He may decide to switch to other brands if he is dissatisfied with the product or services offered by the company.

                          • Bargaining power of Suppliers:- Suppliers mostly rely on the work orders of big companies. A company chooses to buy from a Supplier on their loyalty, quality of the material and the price they offer.

                          Prepared By:-
                          Shashank Bansod
                          Nishank Choraria
                          Arun Kumar Yadav

                          Comment


                          • #14
                            BS3
                            Bs 3 is Bharat stage emission standards are emission standards instituted by the government of india to regulate the output of air pollution from internal combustion engine equipment, including motor vehicle The standards and the timeline for implementation are set by the Central Pollution Control Board under the Ministry of Environment & Forests and climate change.
                            The BS3 is based on European regulation which is established in 2000. BS3 norms introduced in India in 1991 for petrol based and in 1992 for diesel based. BS4 norms especially for NCR and 13 special cities. BS-III vehicles are the vehicles having petrol-powered engines whose carbon monoxide (CO) emission level is restricted to 1.00g/km and Hydrocarbon + Nitrous oxide emission level should also not be more than 1.00 g/km.
                            On the other hand, BS-IV compliant vehicles must have an emission of not more than 0.75g/km of CO and HC+ NOX respectively.
                            The BS3 norms set by central pollution control board they set some standard protocol which was follows by all auto makers.
                            What is the Problem of BS3:-
                            Currently automakers use BS3 norms according to them they produce large amount of vehicles and now they are having stock of around 8.24 lakh. In which these included around 96,000 commercial vehicles, over 6 lakh two-wheelers and around 40,000 three-wheelers.
                            Auto makers took around one year to make combustion engine and it is not possible to follow BS4 norm from one April. According to Supreme Court action to ban norm BS3, automakers facing huge loss so they provide substitute to control pollution that is cleaner fuel. To replace pollutant fuels cleaner alternative fuels are currently being developed. They include compressed natural gas liquefied petroleum gas city diesel hydrogen alcohol fuels and battery operated vehicles. So some of the city of India has comes under a large polluted city in the world.
                            The Effect on finance –
                            Company took debt from bank at cheaper cost but after the announcement of Supreme Court to ban the BS3 vehicle company face huge amount of loss. Bank will not recover their interest and basic amount.

                            Problem faced by hero:-
                            • The big problem faced by hero is they have lot of unsold motorcycles in the stock.
                            • The present conduction of hero company applied customer benefit program means provide 20%-25% discount on slow moving model .
                            • The current stock of existing model up to 3,00,000 unsold stock up to 6.41lakh .

                            The strategy should be followed –
                            • After Ban Company will service and hold maximum loss for those product exist in dealer showroom it batter to provide maximum discount up to 50%.
                            • Sold unsold inventory in half amount so that dealer provide to customer and also provide some amount of discount in BS4 model.
                            • Provide extra accessories on free so the customer show interest to by.
                            • Hero should give discount & mega discount on BS3 motorcycle.
                            • Hero should provide some free petrol on by a bike.
                            • Hero should use my contact for selling the motorcycle.
                            • I should give some particular discount for government employs.
                            • Hero should provide some gift voucher on by a motorcycle (gold, silver).
                            • Hero should provide some free service for the motorcycle for next two or three year.
                            • Hero should provide some lucky draw for customer.
                            • Hero should sell some bike on cheaper rate on some particular place like army canteen.

                            Team member –
                            Sunil kumar
                            Poonam puri
                            Amarita shukla

                            Comment

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