FADA pursues extension of BS 4 sales/registration till end-May
- In current situation, no BS 4 vehicle would be registered after March 31 and thus would end-up in scrap.
- Currently the unsold BS 4 two-wheeler inventory stands somewhere around 8.35 lakh units and is valued at close to ₹4,600 crore.
Federation of Automobile Dealers Associations (FADA) has filed an application to the Supreme Court in order to extend the BS 4 vehicle sales till May 31.
FADA is seeking an extension of two months from March-end which is the deadline for sale/registration of BS 4 models in India. It is looking for modification in writ petition dated October 24, 2018, which states that “no motor vehicle conforming to emission standard Bharat Stage 6 shall be sold or registered in the entire country with effect from April 1, 2020."
On the matter, FADA president Ashish Harsharaj Kale said, “Post our initial application, necessitated due to huge unsold BS 4 inventory and slowing sales, getting rejected by the apex court on February 14, 2020, there has been a drastic change in circumstances in conducting business as usual. SARS-CoV-2 aka coronavirus (COVID-19), which emerged in Wuhan in the Hubei province of China has spread rapidly across the globe and also in India."
He highlighted that the impact of COVID-19 on auto sales in India has been drastic. Since past few days, the situation has only worsen with the partial lockdown situations across various parts in India. Due to which “counter sales has fallen by 60-70 percent across auto dealerships in the last few days."
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“Few District Magistrates have started issuing notices of closure of shops and establishments, including auto dealerships, to stop the spread of virus," he added.
Currently the unsold BS 4 two-wheeler inventory stands somewhere around 8.35 lakh units and is valued at close to ₹4,600 crore. In comparison, the situation in the commercial vehicle segment is still better.
In current situation, no BS 4 vehicle would be registered after March 31 and thus would end-up in scrap.
"Owing to situations which are beyond our control and the fact that many of our members may face dealership closures if left with unsold BS 4 stocks, FADA has once again approached the apex body with a request for permission of sale and registration of BS 4 vehicles till May 31, 2020," he concluded.