Rajiv Bajaj who is the chairman and MD of Bajaj Auto said in a statement that he will oppose any BS4 deadline extension if provided to the auto manufacturers due to coronavirus lockdown. The automakers are trying for an extension to liquidate the unsold stock lying in the plants or the dealerships’ yards. Estimates show that there are over 7 lakh units of BS4 vehicles which are lying unsold. The Federation of Automotive Dealers Association (FADA) filed an appeal in the supreme court asking for an extension in the BS4 deadline considering the current lockdown situation due to which no customers are there in the market.
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Vehicles with an estimated cost of over Rs. 6,000 Crore are lying unsold due to the current pandemic situation. The automobile market in India has hit another low with this massive blow to the economy. Therefore all the auto dealers seek an extension in the BS4 deadline. Rajiv Bajaj says that they had already been issued a three-year notice. Those struggling with the unsold inventory is due to poor management plans and also the greed of the automakers who wanted to earn more money till the deadline arrives. He feels that producing BS4 vehicles in the month of February was a blunder.
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Rajiv Bajaj further feels that if BS4 deadline extension is granted, it will put some other automakers in a difficult situation who might have cleared out the BS4 stock already. This is because the BS6 vehicles are costlier than the BS4 ones. The price competition will not let them survive if the BS4 vehicles continue to be sold. FADA has also written to SIAM seeking help for assurance on the same.
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The country is under a lockdown situation as of now and therefore, no stock can be cleared. The stock which remains in the yards will remain there till the lockdown situation exists. Let’s see what happens next!