The Federation of Automobile Dealers Association (FADA) has earlier this month approached the Supreme Court for an extension of the BS6 deadline by a few months. It is clear that dealers around the country have a lot of unsold BS4 vehicles in stock. Due to the bad market condition as well as the lockdown right now, dealers are having a tough time disposing stock of BS4 vehicles. This news will come as a relief for many.
Please explain about the BS4 vehicles deadline
The honorable Supreme Court has granted an extension to the BS4 vehicle selling deadline. While the previous one was till March 31, 2020, the new one is 10 days post the lockdown lift. In essence, till April 23, 2020. However this is not a free offloading scenario. There are guidelines. For example, the Supreme Court has directed that only 10 per cent of the unsold stock can be marketed. While all the states can take part in this exercise, Delhi-NCR cannot. Yes, that might suck for dealers who have vehicles in stock that side of the country. From what we have heard, Hero Motocorp has lots of unsold vehicles. It might be that the company might export these to countries that still run the Euro-IV norms.
BS6 vehicles are in operation right from the start of 2019. Makers like Mercedes-Benz as well as Maruti have ensured that these vehicles are available in the market right from day one. It’s only late bloomers like Nissan and Renault that have very few or no BS6 vehicles ready. Nissan’s case is worrying as the carmaker, it is reported, has stopped making its vehicles in India long ago. The dealers are reporting stocks of the flagship Kicks model. The Sunny and Micra have long since being dead in the eyes of the car buying population.
In the 2-wheeler segment, Royal Enfield is the only one to have no BS4 stock. The Chennai-based bike maker has said that from March 21, all its dealerships will only have BS6 bikes.