Covid-19 outbreak: Auto companies to move Supreme Court for more time to register BS-IV vehicles

Mumbai: The industry bodies of automobile manufacturers and dealers are looking at approaching the Supreme Court again seeking an extension to the deadline beyond which they cannot sell Bharat Stage-IV vehicles, because they say the Covid-19 outbreak has further hurt efforts to clear inventory.The auto industry has been going through its worst sales slowdown for more than a year now. With the country switching to BS-VI emission standards on April 1, they have just over two weeks to clear BS-IV stocks, which remain large, especially for two-wheelers, for some manufacturers and dealers.The Society of Indian Automobile Manufacturers (SIAM) and Federation of Automotive Dealers (FADA) are considering approaching the Supreme Court separately, seeking relaxation to the March 31 deadline. They want an extension at least till the coronavirus scare settles down.“We are compelled to approach the Supreme Court once again following high unsold BS-IV inventory. There is distress among two-wheeler dealers because of the high stock levels, and low walk-ins to dealerships due to the coronavirus outbreak,” FADA vice-president Vinkesh Gulati said. “Four-wheeler BS-IV stocks are manageable, except for a few manufacturers and certain non-moving colours and models.”The SIAM is expected to approach its members first and get their consent before taking the next step. Due to the Covid-19 outbreak, there is a slowdown in the overall economic activity and customers are not coming out to engage, leading to impact on vehicle sales and inventory, which is an issue of great concern, SIAM president Rajan Wadhera said.

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