Unsold Honda BS4 vehicles will be bought back by the company from few dealerships in India. It may export them to other countries.
Hero MotoCorp was in the news recently for the large scale unsold Bharat Stage 4 inventory it had lying with its dealers. The dealers liquidated the non-sell-able stock by registering the products on its employees’ names. These 2-wheelers will later be sold as second hand vehicles in the market. For this the company has also provided the dealers some cushion. You can read more details on how Hero handled the situation here.
Arch rival Honda was relatively silent on this so far. However, in a latest it has shot in an official press note where it has announced Buyback of the BS4 inventory lying unsold with its dealers. It has elaborated that this majorly includes the Delhi NCR area which can not sell a single BS4 vehicle any more according to the recent Supreme Court ruling. Here is what the press release reads…
Buy-back of the BS-IV inventory lying unsold with few dealers majorly in Delhi NCR area…
This usage of ‘few dealers‘ and with the mention of ‘Delhi-NCR‘ area suggest that Honda’s policy is similar to Hero’s and it (Honda) may not be lifting ALL the BS4 stock from its dealers across India.
It must be remembered that Supreme Court, in its ruling towards the end of March 2020, has allowed sale of only 10 percent of pending BS4 stock in the market. This will be applicable for ten days after the countrywide lockdown is lifted by the Government. However, as we mentioned earlier, this relaxation excludes the Delhi NCR region!
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The exact quantity of the vehicles Honda will buyback has not been shared by the company. Chances are that whatever it picks back, it will liquidate them in its export markets.
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Though Honda has updated its high-sellers to BS6 for business continuity, it is still left with as many as 14 models which are waiting to get the new compliance. You can check that list here.
