Supreme Court Decision on Sale of BS4 Vehicles Explained – Video
Automotive Industry was hoping to clear BS4 inventories before April 2020; however, the coronavirus outbreak has forced Government to impose unprecedented lockdown. Automakers are now left with massive inventories, and fearing huge loses. In a relief for the automotive sector, the Supreme Court has eased the March 31 deadline for the sale of BS4 vehicles in India.
Supreme Court has announced to give an extension of 10 days to automakers to sell the BS4 inventories post the end of the lockdown period. But the apex court has ruled that only 10 percent of unsold BS4 vehicles can be retailed within 10 days after the lockdown ends. This means that dealers will left with huge chunk of the inventory despite some relaxations. The apex court has also allowed customers to registers the BS4 sold cars to register after the due date of March 31, 2020.
SIAM (Society of Indian Automobile Manufacturers) believes that the plant closure of Auto OEMs and components will lead to loss of more than Rs 2,300 crores in turnover for each day of closure.
