Do not expect hefty BS4 two-wheeler discounts this time. We quickly discuss three reasons why the maddening BS3 discounts won’t replicate…
It was a miraculous time when India transitioned to Bharat Stage 4 (BS4) emission norms from the previous BS3. Makers were under the belief that they will get more time, however, Supreme Court announced no further extension which meant makers had to liquidate lakhs and lakhs of motorcycles and scooters within 3-4 days!
This inferred hefty discounts on products from everyone – some were offering upfront cash discounts, many had other freebies (few Honda dealers offered Navi free along with the CBR 250R), etc. It was a stampede like situation at many dealerships. Finally, most of the stock got over within the stipulated timelines and the leftover was called back by companies. They were either shipped to other countries or they were upgraded to the new norms.
India is again graduating to next emission norms on 1st April 2020. This time we are leapfrogging from BS4 to BS6, which is roughly similar to the international Euro 5 norms. The BS3 to BS4 era has left a hope in a lot of buyers that a similar ‘distress sale‘ will happen in the last few days of March 2020. However, that is not going to happen this time, as…
- Makers are Prepared – From the last distress sale, auto makers have learnt a lesson this time. Federation of Dealers Association (FADA) has seeked for relief from the Supreme Court for a month or two to liquidate the existing BS4 stock. However, it was quashed and SC has reiterated that 31st March 2020 will be the last date to sell and register BS4 vehicles. Manufacturers have planned their production adhering to the guidelines as even the last hope of extension has been turned down. In fact, companies like Honda and Hero had started making BS6 2-wheelers almost 5-6 months before the April 2020 deadline.
- Many Products Completely Transitioned to BS6 – Lot of high selling two-wheelers have already been launched with BS6 compliance. This will mean continuity for businesses and buyers who want to own 2-wheelers with BS6 compliance can do so even now.
- Product liquidation already on – Manufacturers and dealers are already offering significant discounts and offers on their BS4 scooters and motorcycles so that they get consumed as soon as possible. Sales folks are already highlighting the increased cost of BS6 variants of the same products which will ensure you save more than the upfront discouts.
So, at best, discounts may increase from the current levels with dealers who may have slightly higher stocks of BS4 vehicles in the second half of March but we do not expect any distress sale this time, barring a handful of dealerships at remote locations which may eventually be left with a few BS4 products in the end.