Following this development, shares of automobile companies came in a sharp selling pressure during Wednesday's session. The BSE Auto index, in a knee-jerk reaction, fell as much as 1 per cent.
Among the individual shares, Hero MotoCorp was the top loser from the auto space, down 3 per cent at Rs 3,232. Ashok Leyland, Mahindra & Mahindra, Eicher Motors and Tata Motors were among the other losers.
The ruling pertains to a case filed by Environment Pollution Control Authority, which had sought a ban on registration of such vehicles after April 1, said that the automobile firms were having the latest technology for a long time and these should have scaled down the production of BS-III vehicles.