What Happens to Unsold BS4 Vehicles After March? Dealers Put This Condition…

Unsold BS4 vehicles billed henceforth will be on returnable basis as per the condition levied by the dealer body…

Apart from the manufacturers themselves, Federation of Automobile Dealers Association (FADA) has been very worried about this transition to Bharat Stage 6 which comes into effect from 1st April 2020. From this date, no BS4-compliant vehicle will be allowed to be sold or registered in the domestic market. This means that all manufacturers and dealers will have to liquidate the existing Bharat Stage 4 compliant vehicles before this date. Failing which these will be left useless in the domestic market.

Looking at the BS4 inventory levels with dealerships, FADA went to the Supreme Court of India and requested for an extension in the date for a few months. However, the top court of the country declined to provide any relaxation and reiterated that 31st March 2020 will remain the deadline and all makers will have to abide by it.

Last time, manufacturers had to retort to distress sales in the last few days of March to clear out the pending stocks, which almost cleared out the BS3 vehicles.

Looking at the condition and the SC’s order, dealers have asked all makers to only supply BS6 compliant vehicles with immediate effects to ensure no further pile up of BS4 vehicles.

Unsold BS4 vehicles
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FADA through SIAM, has also iterated to all manufacturers that any further billing of BS4 vehicles which are not against customer orders, will be on a returnable basis to ensure there is no financial loss to dealers.

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Last time, few makers accepted returns of the handful of vehicles that were left. Those were either updated to new emission norms or were exported to other countries.

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If you were expecting BS3-like distress sales in the second half of March, we have shared three reasons why you may be disappointed. You can read that story here.

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