FADA (Federation of Automotive Dealers Association) has been approaching the supreme court regarding the extinction of selling the BS4 vehicle’s stock. The federation’s application stated the registration of old BS4 vehicles after the 31st of March. Initially, after the end of March 2020 BS4 vehicle sale was not permitted.
Many dealers are offering huge discounts on to clearing off the old BS4 vehicle stocks. The dealers were not receiving any footfall due to the widespread of the novel coronavirus. The crisis was inevitable which resulted in even fewer sales of the new vehicles.
Verdict | BS4 Deadline Extended
Now the matters are even worse as the government has implemented a nationwide lockdown. In other words, only the shops with daily essentials are allowed to open. Even the manufacturing of the big giants like Hero Moto Corp has been shut down. The production of old BS4 vehicles stopped a while back and for almost a month the manufacturers are manufacturing new BS6 compliant vehicles.
To reduce the impact on the automotive dealers, FADA submitted an application in the high court to appeal for extinction with BS4 vehicle stocks.
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After the pandemic, the Supreme Court has decided and allows the sales of the old BS4 vehicle’s stock conditionally. Now the Dealerships are allowed to sell their 10% if their leftover stocks into the market that too just for 10 days.
Reason | BS4 Deadline Extended
There are people who bought BS4 vehicles but could not get their vehicles registered. Well, they can now do so after the conditions become better and the lockdown measures are withdrawn.
Way before the coronavirus pandemic the Indian automotive industry was losing sales by a really large number. Now the nation is on lockdown, the industry is witnessing even lesser sales. This is why even after the discount on BS4 stocks there were no many vehicles sold at the dealers’ end.
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This has made the lives of many dealers miserable and full of worries. The situation is not set to recover soon but we have our hopes high. Let’s wait and see where the automotive industry heads in the next couple of months.
