Unsold BS4 2-wheelers are in massive numbers and FADA says it is impossible to exhaust them in the stipulated timelines now!
Coronavirus is causing a havoc not just in India but in the world. It has crippled the auto industry in particular and then there is this double whammy of BS6 transition. This means that only Bharat Stage 6 compliant vehicles will be allowed to be sold from 1st April 2020. All current emission compliant two-wheelers and cars will have to be liquidated by or before 31st March 2020.
Now, with many states already in lockdown (some even under curfew), it is obvious that footfall at dealerships has fallen and buyers are being extra cautious. Even the ones who have booked their vehicles are not completing their purchase.
This has caused a lot of distress to vehicle dealerships and manufacturers as all their plans have gone for a toss. According to an online report dealers are sitting on a pile of whopping ~7 lakh BS4 2-wheelers (along with 20,000 other vehicles like cars and commercial vehicles).
The dealers representative body Federation of Automobile Dealers Association (FADA) has said that it is impossible to liquidate this massive stock before the deadline, specially under the current lockdown period where each citizen is advised to stay at home and not come out.
FADA has gone to the Supreme Court yet again (this will be its third time!) to extend the deadline till May end. Their reason is very genuine and there is not much a dealer or a manufacturer can do at this point of time.
27 March is the probable date for Supreme Court’s hearing (even the SC is partially working). Supreme Court should consider the extension as this is a natural calamity and are completely unforeseen circumstances.
Source – Hindu Business Line