BS4 Deadline Extended: SC Allows 10 Day Leeway Period Once Lockdown Is Lifted
Published On Apr 15, 2020 By Gaurav Sadanand
Supreme Court has allowed the sale of 10 per cent of BS4 inventory for 10 days after midnight of 3 May 2020
- The previous final date to sell BS4 stock was March 31.
- Dealers can only sell off 10 per cent of their remaining BS4 stock.
- Those vehicles sold before 24 March but could not be registered can also be cleared.
The COVID-19 lockdown has had a drastic impact on the automotive industry. It was hard enough for manufacturers and dealer partners to get rid of unsold BS4 sold before the April 1 deadline. And the lockdown which forced dealers to shut shop just made things worse. After considering the current state of affairs, the Supreme Court has allowed the sale of 10 per cent of BS4 inventory for 10 days after midnight of 3 May 2020, which is when the nationwide lock-down hopefully gets lifted. Weirdly enough, the exemption doesn’t include Delhi-NCR.
The Federation of Automobile Dealers Associations (FADA) had earlier appealed to the Supreme Court seeking an extension of two months from the April 1 deadline, which would help companies clear their stock. According to certain reports, Rs 3,850 crore worth of two-wheelers remain unsold even today.
The radical shift from BS4 to BS6 emission norms, -- a transition that took Europe eight-odd years to achieve -- in a mere 3 years put most manufacturers in a soup. Despite this, vehicle manufacturers and component suppliers in India managed to come together to pull off what some would call an impossible task. So it’s only fair that they be given some more time to get rid of dead stock.
On the flipside, Rajiv Bajaj, Managing Director of Bajaj Auto, said he's against any extension given for the sale of BS4 two-wheelers. He further added whilst speaking to Hindu Business Line that Bajaj Auto will continue to object to any such extension because this "unjustly penalises those of us" who have complied with the law in "letter and spirit.” Moreover, "defaulting companies must reimburse their dealers for "redundant BS4 stocks, if any, on April 1."
That said, there are brands like Royal Enfield who won’t be affected by the lockdown as it has managed to sell all of its BS4 vehicles. Honda Motorcycles And Scooter India (HMSI) seems to be on their way to accomplishing the task as well.