Maruti Suzuki has incurred a loss of Rs 125 crore due to the obsolete Bharat Stage (BS) IV parts that are lying with the company as well as its vendors. Automobile companies were ordered to switch from BS-IV to BS-VI before the deadline of April 1, 2020.
Maruti Suzuki was the first carmaker to make the transition. By the end of the financial year 2019-2020, Maruti had sold off all its BS-IV compliant cars.
“We have taken a write-off of about Rs 125 crore which is including the vendors and the stock we had in the house so that’s the obsolescence we had on account of the BS-IV stock components we had,” Ajay Seth, Chief Financial Officer of Maruti Suzuki India, was quoted as saying.
BS-VI is an emission norm that was rolled out by the central government to curb the sharp rise in pollution level. A timeline and regulatory standards were set by the Central Pollution Board for all the carmakers.
The difference between BS-IV and BS-VI compliant vehicle is the amount of sulphur in the fuel, which is 50 parts per million (PPM) in BS-IV vehicle. The amount of ppm in a BS-VI model stands at 10. Using of BS-VI vehicles will bring down the emission of the harmful NOx (nitrogen oxides) from diesel cars by nearly 70% and 25% in the petrol variant.