Amid the Coronavirus outbreak in India, multiple sectors have been badly hit and automobile sector is one of them. The rapid outbreak of the virus took place ahead of the BS6 deadline in the country that is all set to implement starting April 2020, which is next month onwards. With the outbreak, a complete lockdown has been implemented across numerous cities and states in India that has made the situation even tricky. With this, the unsold BS4 inventory remains a major cause of concern for dealers across India.
According to Ashish Harsharaj Kale, President, Federation of Automobiles Dealers Association (FADA), the dealers across India are facing a tough situation as BS4 inventory worth Rs 6,400 crore is still lying unsold due to the impact of Covid-19 states and cities under lockdown. According to the said body, over 12,000 dealer outlets are currently shut in the lockdown states and cities. FADA also says that many of its members have voluntarily shut their outlets even in areas where there is no mandatory lockdown as a safety measure.
Keeping the situation in mind, FADA had earlier requested the Supreme Court to extend the deadline for the sale of BS4 vehicles till the 31st of May. The body is quite hopeful and is awaiting relief from SC for the extension. Numerous manufacturers have announced a complete shutdown at their production facilities to prevent the spread of the virus. Today, manufacturers like Renault, TVS, Kia Motors, Yamaha and more announced measures to prevent the spread of Coronavirus and this includes the suspension of operations at the respective production facilities.
Now, what remains to be seen is whether the deadline for the sale of BS4 vehicles remains the same or Supreme Court allows an extension with the Coronavirus outbreak. Stay tuned to know. Also, for the latest auto news and reviews, subscribe to our official Express Drives YouTube channel.
Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.