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Fate Of Lakhs Of Unsold BSIV 2-wheelers, 4-wheelers May Get Decided Tomorrow

BS-4 stock to the tune of seven lakh two-wheelers, 12,000 passenger vehicles and 8,000 commercial vehicles remains unsold at dealership as the deadline for the mandatory switch over to BS-VI nears

Photo Credit : Reuters

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From April 1st 2020, No BSIV vehicle can be sold/registered, this has been known for quite some time and the industry has been preparing ever since. But as the entire country moved into a lockdown mode to curtail the spread of the Coronavirus, dealerships have closed and buyers are staying home. The decision of purchasing a 2wheeler or 4wheeler has taken a backseat as everyone is trying to sort out items of daily needs.

This has led the Federation of Automobile Dealers’ Associations (FADA), which represents over 26,000 dealerships, to file a petition with the Supreme Court, seeking an extension in the deadline till May end. But In the wake of the Corona pandemic, The Supreme Court on Monday said it was mulling over shutting down its functioning and considering to hear urgent matters through virtual means. The top court said that by Tuesday evening, all lawyers' chambers in and around the apex court premises would be sealed.

While FADA had approached the Supreme Court last week with its petition, the hearing was deferred on the basis of being non-critical amidst the many dynamic situations unfolding in the country.

According to FADA president Ashish Harsharaj Kale, the latest update from the Court hints at a probable hearing on March 27 on the same.

“OEM's need to give assurance of return of unsold BS-IV inventory in case we do not get a date extension in the Supreme Court.” – said Kale.

The country’s largest two-wheeler maker Hero MotoCorp had also appealed to the Supreme Court to extend the deadline set for sale and registration of BS-IV vehicles due to the impact of the Coronavirus outbreak on retail sales.

A report from DART Research sees a 50% drop in footfalls in automobile showrooms across the country. This may worsen further as the next couple of weeks as the government locks down the country.

The 21-day lockdown also brings about multiple challenges like vehicles already bought but are yet to be registered are stuck because of the RTO’s not operating, Banks are barely operating thereby stumbling the loan dispersal process and more over with state borders being sealed vehicles in transit are stuck and can not be registered.

While most OEMs have shutdown plants across the country in a bid to slowdown the Corona Pandemic, the primary focus, as could be seen, is the prevention of the spread of the disease and saving lives. All financial implications and their solution would now highly depend on stimulus measures to be taken by the government that are industry-specific.


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