April 1, 2020, is almost here and that would bring the new BS6 norms into play. Although 90% of the vehicles from manufacturers are now BS6 compliant. But even with having BS6 compliant many manufacturers have huge lots of BS4 stocks left which they cannot sell after April 1st.
So Federation of Automobile Dealers Associations (FADA) has approached the Supreme Court on behalf of its members and filed an Interlocutory Application against the rule that “no motor vehicle conforming to emission standard Bharat Stage-IV shall be sold or registered in the entire country with effect from 01.04.2020.” Due to this dealers have been selling the old BS4 stock at great discounts so that they could clear the stock before April 2020.
But the sales have slowed down quite a bit due to ongoing Coronavirus (Covid-19) outbreak, as people are not moving out of their houses, fearing the virus. Due to which sales have taken a huge dip from last week, according to FADA sales have been reduced by almost 60-70%.
Mr Ashish Harsharaj Kale, President of FADA, said that the situation has become worse in past 3-4 days, due to partial lockdown in many cities and towns, like offices, colleges and even notice for closing auto dealership for stopping further spread of the virus. With partial lockdown to continue at least this month, the deadline for registration of BS6 vehicles will come to an end. Mr Kale also said that many dealerships will also face the risk of closure if the remaining BS4 stocks aren’t cleared out. Already the stocks have been selling for a discount.
We will see what action will the Supreme Court take to help out the dealers because the deadline is not very far away. FADA has asked the court to extend the timeline till 31st May 2020. If the Supreme Court denies the application, then all the BS4 stocks will not be further registered.
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