As the BS6 era dawns, dealers with stocks of BS4 cars are in a quandary. They are left with stocks of BS4 motorcycles and cars. Adding to the woes is the fact that state governments have been asking RTOs to not register BS4 vehicles beyond a certain date. At the same time, financial institutions have refused to provide loans to BS4 vehicles.
According to automobile dealers’ body Federation of Automobile Dealers Associations (FADA), things were seemingly under control till February-end. It was only in the first week of March that the dealers started getting circulars from state transport departments with deadlines for getting the BS-IV vehicles registered.
Besides, the banks also came out with notices that they would not finance BS-IV stock after specific dates in March, further impacting the confidence of the dealers. It was followed by the coronavirus outbreak, which has led to a steep drop in footfalls in the showrooms.
The dealer body has approached the state governments and the Ministry of Road Transport and Highways regarding the matter but the confusion has already impacted the confidence of the dealer community, confirmed FADA president Ashish Harsharaj Kale to PTI.
Express Drives spoke with a few dealers on the discounts being listed out on BS4 vehicles at the moment. Hyundai dealers said that on the Xcent and Creta are both available with huge discounts. A cash discount of Rs 50,000 and Rs 75,000 are available respectively. To sweeten the deal, an exchange bonus of Rs 50,000 is offered with both models. Toyota is offering a similar amount of Rs 35,000 on both exchange as well as cash discount
On the BS4 versions of the Nexon, Tata is offering a discount of Rs 75,000 and an additional Rs 25,000 on exchange. The slow-selling Zest gets a Rs 1.5 lakh discount while the Hexa has a flat Rs 2.50 lakh discount.
Mahindra is the one with the longest list of discounts and might we add, the biggest ones too. Buying a BS4 Alturas will only have one shelling out Rs 2.4 lakh less. The XUV500 has a flat cash discount of Rs 1.62 lakh. The Marazzo has a slightly lower Rs 1.40 lakh cash discount. Kuv100 customers too get an Rs 70,000 discount.
No, these discounts aren’t only for the four-wheelers. The two-wheelers have one too. Kawasaki range has got discounts above Rs 50,000 on the Ninja 400, Ninja 650, ZX-6R, Vulcan S, and the Ninja 1000 motorcycles. Honda too has benefits up to Rs 11,000 off including on popular scooters like the Activa 5g.
The solution to these excess stock is that instead of scrapping new BS4 vehicles, dealers can register these themselves and then sell off as second-hand. At least they can get some of their invested money back. Do you think this is a feasible solution? Let us know on our social media channels.
With inputs from PTI
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