Over Rs 6,400 crores worth BSIV vehicles could remain unsold
The nationwide lockdown in place to control the spread of the COVID-19 diesease raises questions on the dilution of Rs 6,500 crore worth of BSIV stock still unsold at dealer lots around the country. Over Rs 7 lakh two-wheelers, 12,000 passenger and 7,000 commercial vehicles are set to become unsaleable come April 1.
Dealer walk-in had started taking off in early March, but the partial and now complete lockdown in the country has reduced footfalls to nil. To tide over this situation, various parties like SIAM, FADA, Hero Honda, and others have approached the Supreme Court asking for a deadline. But, in light of the social distancing measures in effect, the Supreme Court has decided to only hear urgent matters.
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The Federation of Automotive Dealers Association (FADA), is also in talks with SIAM to find a way for carmakers to buy-back BSIV stock. Another possible move by dealers, as a last resort, could be the ghost registrstion of BSIV inventory. Dealers could register vehicles in their own names, and then sell these 'second-hand' BSIV cars after the deadline
This delay in the clearance of BSIV stock means that dealers haven't been able to sell as many BSVI vehicles as they could have, reports peg this loss to Rs 12,000 crore.
Source: ET Auto