It has been a rough year for car dealers in India. On the one hand car sales have been slowing owing to the state of the economy, while on the other hand the deadline to move to BS-VI emissions norms has had dealers desperately trying to clear inventory before 1 April 2020.
On Tuesday, the Federation of Automobile Dealers Associations (FADA) on behalf of its members once again approached the Supreme Court of India seeking an extension of the deadline to switch to BS-VI norms to 31 May 2020.
Post 1 April 2020, no vehicle that does not conform to BS-VI emissions standards can be registered anywhere in India. FADA had initially approached the court on 14 February 2020, but that application was rejected by the Supreme Court.
Now, with the spread of coronavirus (COVID-19) partially shutting down cities, dealers are again seeking an extension.
FADA President Ashish Harsharaj Kale said, “Following the spread of coronavirus, there has been a change in our business. 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 to 70 percent across dealerships in the past few days.”
The situation has worsened in the past few days with a partial lockdown situation in many towns and cities and a few district magistrates have started issuing notices of closure of shops and establishments including auto dealerships to stop the spread of virus.
Kale adds: “Since the situation is beyond our control and the fact that many of our members may face dealership closures if leftover with unsold BS-IV stocks, FADA has approached the apex body to request permission for sale and registration of BS-IV vehicles until 31 May 2020.”
Most car makers have already shifted to BS-VI compliant vehicles. However, some dealers still have unsold inventory which they are trying to sell at huge discounts.
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