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Coronavirus Lockdown: BS4 Vehicles In India Worth Rs 6,400 Crore Remain Unsold

Rahul Nagaraj

The entire country has been put under lockdown for a period of 21 days by the Prime Minister, Narendra Modi. The order comes as a response to contain the spread of the Coronavirus pandemic in the country.

Many automotive manufacturers in India have already announced the suspension of production. Brands such as Maruti Suzuki, Mahindra, Tata Motors, Kia Motors, Bajaj Auto, Hero MotoCorp and others have indefinitely shut down production facilities across India.

However, one major issue concerning all major four and two-wheeler brands is their unsold BS4 inventory. The government has previously announced that starting 1st April 2020 all vehicles sold in India should comply with the latest BS6 emission regulations.

Now, with the entire country under lockdown and most company dealerships being closed, reports from Financial Express indicate that Rs 6,400 crore worth of BS4 vehicles still remain unsold.

Reports suggest that the Federation of Automobile Dealers Association (FADA) have requested the Supreme Court of India to extend the BS6 implementation deadline to the 31st May 2020. The Supreme Court is yet to make a decision, although the association does feel relief is on the way.

The Coronavirus outbreak has affected automotive brands across the world. Almost every major car brand not only in India but across the globe has shut down operations. Many manufacturers are also said to be working on ways to help provide support to the medical staff and doctors.

Companies like Mahindra and Renault are said to be researching ways to manufacture medical equipment such as visors, ventilators and others to support the health authorities.

The Covid-19 outbreak has also put a dampener on sales. Many customers are understandably postponing their plans for purchasing new vehicles at this time. Automotive brands had been offering huge discounts and offer on BS4 models, ahead of the April deadlines. However, with the country now under strict lockdown, even this doesn't seem to help.

Thoughts On The Unsold BS4 Vehicles In India

The Coronavirus outbreak in India has put a full stop to most activities, let alone purchasing new vehicles. The low sales of vehicles during this time though will have a major financial burden on automobile brands, as it will be tough for them to liquidate the BS4 models, especially once the new emission norms come into effect.

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