As the deadline for the ban on the sale of BS4 vehicles closes in, automobile dealerships are concerned if they’ll be left with unsold stocks as retail has been affected negatively by the outbreak of Coronavirus COVID-19. Federation of Automobile Dealers Associations (FADA) on behalf of its members has once again approached the Supreme Court and has filed an Interlocutory Application along with an Application seeking modification in Writ Petition No 13029 of 1985 in the matter of M C Mehta Vs Union Of India & others, dated 24th October 2018 whereby it has been directed that “…no motor vehicle conforming to emission standard Bharat Stage-IV shall be sold or registered in the entire country with effect from 01.04.2020.”
“Post our initial application, necessitated due to huge unsold BS-IV inventory and slowing sales, getting rejected by the Hon’ble apex court on 14th February’20, there has been a drastic change in circumstances in conducting business as usual. SARS-CoV-2 a.k.a Coronavirus (Covid-19) which emerged in Wuhan in the Hubei province of China has spread rapidly across the globe and also in India,” FADA President Ashish Harsharaj Kale said.
Following this in the past week, there has been a drastic drop in sales and customer walk-ins have reduced to a trickle as caution sets in due to fear of spreading of the virus. Counter sales have fallen by 60-70% across auto dealerships in these past few days.
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The situation has worsened in the past three-four days with partial lockdown situations in many towns and cities and few district magistrates have started issuing notices of the closure of shops and establishments including auto dealerships to stop the spread of the virus.
“Owning to situations which are beyond our control and the fact that many of our members may face dealership closures if leftover with unsold BS-IV stocks, FADA has once again approached the apex body with a request for permission of sale and registration of BS-IV vehicles till 31st May’20 and hopes to get an urgent hearing in the Hon’ble Supreme Court owing to the criticality of the issue and the deadline of 31st March approaching fast,” Kale added.
