The Centre extended the deadline for implementing cleaner emission norms for two-wheelers across the country, a move that has come as a big relief for auto manufacturers, especially the country's largest two-wheeler maker, Hero Honda.
The government had earlier asked auto manufacturers to upgrade their two-wheelers to Bharat Stage (BS) 3 from BS 2 norms by April 1.
This deadline led to problems for Hero Honda, as its largest selling, and the country's most popular motorcycle, Splendor, is still on BS 2. There were fears that the company might see a fall in sales, as road transport offices were refusing to register the vehicle after March 31.
Under the new norms, which have been discussed with vehicle manufacturers and are expected to be notified soon, companies like Hero Honda would be given time until July 1 to convert their models to Bharat Stage 3 for sale in 13 cities, including Delhi, Mumbai and Chennai. For sale in the rest of the country, auto makers would now have time until October 1 to switch their two-wheelers to BS 3.
The move has come as a respite to Hero Honda, which sells more than one million Splendors in a year, constituting 25 per cent of the company's total annual sales. The brand also accounts for 13 per cent of the total domestic sales of motorcycles.
"Yes, there was some confusion initially, but we asked the government that we must be given time to make the change," a senior Hero Honda official said. "The government has now agreed on a two-stage implementation process. Till then, there is no restriction or problem in selling our Bharat Stage 2 two-wheelers."
Two-wheeler manufacturers argued with the government that in many states BS 3 fuel is not available and it would not be possible for them to undertake the conversion across the country. Responding to the plea, the government prepared a draft notification on March 30 under which a new deadline was fixed. However, the rules were not notified, earlier leading to confusion in the market.
Experts say the conversion from BS 2 to 3 would make a vehicle dearer by about Rs 1,000. They also say that unlike in a car, using BS 2 or 3 fuel does not make any difference to the performance of the two-wheeler.
The confusion in the rules is reflected at both the dealer networks and at the road transport authority offices. "We are registering only two-wheeler vehicles which are bought before March 31 if they are Bharat Stage 2 complaint. But, because of the confusion, we are not registering new vehicles from April 1," said an official at the Road Transport Authority office in Kanpur.
