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Uncertainty Continues to Linger Over Sale and Registration of BS4 Vehicles

With more than 7 lakh unsold BS4 vehicles, the Supreme Court will be hearing the case tomorrow, appealing an extention for sale & registration of such vehicles.

The nationwide lockdown due to the coronavirus pandemic is definitely having a severe impact on the economy of the country, including the automobile industry. The Society of Indian Automobile Manufacturers (SIAM) has already estimated a minimum loss of Rs 2300 crore each day in this quarantine period. The Federation of Automobile Dealers Associations (FADA) has yet again approached the Supreme Court, seeking an extension for the sale and registration of BS4 vehicles in the country.

Uncertainty continues to linger over unsold BS4 vehicles.
Uncertainty continues to linger over unsold BS4 vehicles.

FADA has filed an interlocutory application in the Supreme Court along with an application seeking modification in Petition No. 13029 of 1985, which directs that no vehicle with BS4 emission standard shall be retailed or registered in India from April 1 onwards. FADA has requested the Supreme Court to extend the deadline for the sale and registration of BS4 vehicles till May 31, 2020.

However, a bench, consisting of Supreme Court Justices Arun Mishra and M R Shah refused to list the application filed by FADA and said it can’t be heard before March 31. The apex court had already rejected FADA’s application last month for the extension of deadline to clear out BS4 inventory. The Supreme Court had announced way back in October 2018 about the March 31st deadline.

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However, under present circumstances, and the lockdown due to coronavirus in place, all dealerships are shut and no sale is taking place. By some estimates, more than 7 lakh units of BS4 stocks are yet to be sold. The cost of these vehicles is pegged at over Rs 6,000 crore. The industry was confident that with the festive season of Gudipawa and Ugadi in place, they will be able to sell out their remaining BS4 stock.

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The Supreme Court will be hearing the matter over a conference call tomorrow and manufacturers are hopeful that the court will grant an extention in the light of the present situation. There is the possibility that the deadline will not be extended and in that case, the only other options for the dealers is to return the unsellable inventory back to the OEMs. FADA has also written to the SIAM President on behalf of the dealers asking manufacturers for assurance on the return of unsold BS4 stocks in case the Supreme Court verdict doesn’t come in their favour. The situation currently seems very uncertain and no one seems to have any answer for the solution. Only time will tell how things roll on in the future.

The post Uncertainty Continues to Linger Over Sale and Registration of BS4 Vehicles appeared first on Car Blog India.


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