Monday, April 03, 2017

India has banned the sale of the more-polluting vehicles starting from April 1st, 2 days ago.

Sounds good?

The small issue arises though, that in a country with 5 times the population of the USA, there are 5 times as many car sales lots, new/used - whatever.

There are a lot of new and never been used gross polluter cars sitting on those sales lots. Now, who has to suffer the loss of the inventory costs?

The estimate is 0.8 million vehicles, worth 1.9 billion dollars.

Do they try to sell them to Indonesia? African countries? Where can they ship them off to recoup some of the cost? And doesn't that just move the pollution to another underdeveloped country?

Now, keep in mind, they had 2 YEARS of warning that this was coming, and yet,

India's top court on Wednesday banned the sale of vehicles running on older Euro III fuel technology from April 1, a decision that led to a sharp fall in shares of major automakers sitting on unsold inventories.

Shares of two-wheeler manufacturer Hero MotoCorp fell as much as 4.4 percent, while those of truck manufacturer Ashok Leyland were down as much as 6.6 percent and carmaker Tata Motors' shares dropped nearly 2 percent.

The court, in its judgment, said health concerns of citizens took precedence over any financial losses for companies.

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