March 31st 2020 was the deadline for all manufacturer to clear their remaining BS4 vehicle inventory but this came to an abrupt stop due to the ongoing Coronavirus outbreak the Indian automobile industry is now stuck with almost INR 6,400 Crores worth of unsold inventory. It is also believed that there can be over 12,000 dealerships located Pan-India have closed their respective operations.
Some of the major carmakers including Maruti Suzuki, Hyundai, Tata Motors, Kia Motors, Mahindra, Toyota, Nissan and Renault have also stopped production at their respective facilities. Following the footsteps of these manufacturers, some of the Luxury pioneers such as BMW, Mercedes-Benz, Volvo and recently Rolls Royce have also done the same until any further notice.
However, FADA (Federation of Automobile Dealers Associations ) had recently approached the nation highest decision-making authority the Supreme Court seeking an extension upto 31st May due to the on-going Coronavirus outbreak in the country. The application which was submitted to extend the cycle of the BS4 vehicle inventory cited upon the counter sales which has dropped by a whopping 60-70 per cent across various auto dealerships in India in the past few days as the customer walk-ins have also decreased to a trickle over the fear of spreading the virus.
Suggested Read: Coronavirus outbreak could impact the Indian Auto Industry- ICRA
According to recent media reports, the Supreme court has now decided not to extend the designated deadline by 31st May 2020. As of now, the current deadline still remains 31st March 2020.0