FADA Reaches Supreme Court for Extension of BS4 Sale till May 31
With BS6 emission norms to be introduced on April 1, automakers are taking all the measures to clear their BS4 inventory and convert their already manufactured vehicles to BS6 norms. Due to rising threat from Coronavirus (COVID-19), the process of exhausting BS4 stocks have hit hard. Now, the Federation of Automobile Dealers Associations (FADA) has once again approached Hon’ble Supreme to extend the BS6 deadline to May 31, 2020.
FADA President Ashish Harsharaj Kale said, ”Post our initial application, necessitated due to huge unsold BS-IV inventory and slowing sales, getting rejected by the Hon’ble apex court on 14th February’20, there has been a drastic change in circumstances in conducting business as usual. SARS-CoV-2 a.k.a Coronavirus (Covid-19) which emerged in Wuhan in the Hubei province of China has spread rapidly across the globe and also in India.
According to SIAM data, counter sales of vehicles has fallen by 60-70% across auto dealerships in these past few days. There has been drastic drop in sales and customer walk-ins have reduced significantly as caution sets in due to fear of spreading of the coronavirus.
SIAM further said that the situation has worsened in the past 3-4 days with partial lockdown situation in many towns and cities. In fact, district magistrates of some of the major centers have asked dealers to shut their shops to stop the spread of virus. FADA believes that if situation worsened than many of the automobile manufacturers may face dealership closers. FADA has again approached the apex body with an hope to get a permission of sale and registration of BS4 vehicles till May 31, 2020.
Image Source – Bloomberg
