[volkman10]

Supreme Court allows sale of 10% of unsold BS IV stocks after April 14.

The Federation of Automobile Dealers Associations (FADA) - the unified national body representing 15,000 automotive dealer principals across the country - and vehicle manufacturers today received a reprieve in the form of a clearance from the Supreme Court. It allows them sale of 10% of all unsold BS IV stock/inventory for 10 days frtom the end of the all-India lockdown (April 14) except in Delhi and NCR.

Link

[sgiitk]

This was necessary to liquidate old stocks due to the Covid lockdown. The dealers must have planned out some strategy which has been hit for a six. Of course Petrols can manage, but Diesels will have a real problem.

[Sukanta73]

Originally Posted by sgiitk

Petrols can manage, but Diesels will have a real problem.

Is there any issue of BS4 Diesel vehicles especially cars?

[Diesel_Drives]

Minutes from the proceeding between Supreme Court and FADA(as received). Quoting from the same:

"1,05,000 two-wheelers, 2250 passenger cars and 2000 commercial vehicles are there which have been sold but not registered through out India. Unsold vehicles are stated to be 7,00,000 two wheelers, 15,000 passenger cars and 12,000 commercial
vehicles."

"it is ordered that sold vehicles be registered by the
concerned authorities by 30.04.2020. However, at the same time we direct the applicant to furnish details of the purchasers, on affidavit, of the aforesaid vehicles through e-mail, within seven days from today. Details of registration shall also be furnished to
this Court."

" It is stated that there are 7,00,000 two-wheelers which are unsold through out India with different dealers. Similarly, passenger vehicles are 15,000 and commercial vehicles are 12,000. In Delhi and NCR region, we are not allowing sale and registration of these kind of vehicles any more. However, in the remaining part of the country, due to the situation which has arisen due to lock-
down, it is ordered that not beyond 10% of the vehicles, except with the Dealers in Delhi and NCR region, are permitted to be sold out of the aforesaid number of vehicles to make up the good of six days which were available before the lock-down has been ordered in the country. Details of the sale shall be furnished by the applicant and there shall be no violation of the order passed by this Court. Sales to be done within ten days of the lifting of the lock-down operating in the concerned cities and not beyond it and on an affidavit number of vehicles sold shall be stated by the applicant/Federation of Automobile Dealers Association and only those vehicles shall be permitted to be registered about which affidavit is filed. "

[sgiitk]

I have a suggestion. Why not postpone BS-VI by two to three months. This will cover almost all eventualities. BS-VI vehicles can be sold with the same indicated on the RC. However, BS-IV will be extended by 2-3 months.

[volkman10]

Originally Posted by sgiitk

I have a suggestion. Why not postpone BS-VI by two to three months. This will cover almost all eventualities. BS-VI vehicles can be sold with the same indicated on the RC. However, BS-IV will be extended by 2-3 months.

As the decision is already given there is no point in further speculations/suggestions. No sale/reg. of BS IV vehicles after 24th April .

The Federation of Automobile Dealers Associations (FADA) - the unified national body representing 15,000 automotive dealer principals across the country - and vehicle manufacturers today received a reprieve in the form of a clearance from the Supreme Court. It allows them sale of 10% of all unsold BS IV stock/inventory for 10 days from the end of the all-India lockdown (April 14) except in Delhi and NCR.

[volkman10]

Isuzu Motors defers BS VI vehicle launch to 2nd quarter of FY-21

Japanese automaker Isuzu Motors India has delayed its BS VI product launch to second quarter of FY-21. A firmer date will be announced closer to the launch the company said in a statement.

Link

[Guna]

What happens to the other 90% of the 7 lakh unsold vehicles? Scrapping? That would be foolish considering that the environmental damage that would take place to manufacture similar number of BS6 vehicles would outweigh the gain made by the supposedly cleaner engines. It is sad that the courts don't take holistic view of things. Not to talk about the burden on the manufacturers and eventually the buying customers. They should simply look at pushing the deadline by 6 months or so and the manufacturers should look at salvaging whatever is possible.

[condor]

Originally Posted by Guna

What happens to the other 90% of the 7 lakh unsold vehicles? Scrapping?

To add, factories are currently closed, and supply chains need time to come up to speed again. The contract workers / temp workers would be away too - and this workforce is also required to run the factories across the stream. And then the customers need to be ready too. How many prospective buyers would continue to have the same financial out-flow readiness at the end of this ? Businesses would focus on getting their work restarted, and it would take time for them to come up to previous levels.

[Bibendum90949]

Originally Posted by Guna

What happens to the other 90% of the 7 lakh unsold vehicles? Scrapping? That would be foolish considering that the environmental damage that would take place to manufacture similar number of BS6 vehicles would outweigh the gain made by the supposedly cleaner engines.

Not just that. Wouldn't it be squandering country's resources too ? Imagine the man and machine hours that had gone behind making those 7 lakh vehicles. Scrapping it would be a deplorable move.

Some of the manufacturers have used car division. They may look to register the cars before deadline and resell through those channels.

[itwasntme]

Originally Posted by Guna

What happens to the other 90% of the 7 lakh unsold vehicles? Scrapping?

This has been discussed many times in other threads. There are multiple possibilities:

1. These vehicles can be exported to countries where similar BS-IV regimes are allowed. Example is Africa & LATAM and this is a real possibility for 2 wheelers.
2. Invoice them to dealers (with cash flow provided by manufacturers themselves) and register them under BS-IV. Then sell them as second owner but brand new vehicles to customers. The hit suffered by the manufacturers is ~10-15% in terms of RTO charges BUT which will be offset by the fact the non-discerning customers will still pick them up as the new BS-VI prices have been hiked by 15-20%. To most people, as long as they save 5-10% on the upfront cost, BS-IV vs BS-VI does not really matter especially for mainstream cars or 2 wheelers. Remember, there is no ban on second-hand BS-IV vehicles.
3. Sell in bulk to third parties like leasing companies and corporates.
4. Cannibalize them for BS-VI production.

I appreciate these are easier said than done. Further, I feel the COVID-19 situation is being cynically used by SOME manufacturers as a handy whipping boy. I am glad the SC did not yield to their bullying and media frenzy.

To reiterate, there are multiple alternatives available which were very successfully used during the BS-III to BS-IV transition. I would be very surprised if ANY vehicles are 'scrapped'.

[audioholic]

Originally Posted by itwasntme

This has been discussed many times in other threads. There are multiple possibilities:

To reiterate, there are multiple alternatives available which were very successfully used during the BS-III to BS-IV transition. I would be very surprised if ANY vehicles are 'scrapped'.

Absolutely. The COVID-19 situation is a very convenient excuse for what is actually a lack of long term planning. This, especially after the fiasco during BS4 transition which must have been a good lesson to manufacturers. In fact, companies like Honda still had a good load of BS3 vehicles lying in the plant which they thought they could get an extension and sell the vehicles. But when the deadlines are announced pretty well in advance, situations like these should hardly matter. Agreed there is a drop in sales already this year. But what stops the manufacturers and dealers from reducing the production and focussing on exhausting existing stocks? From December, Toyota stopped pushing BS4 Innovas to dealers even though the car was selling like hotcakes. The dealer dispatch was done only on a firm customer order and payment of the full money. I guess even the production was done only on a firm order. This was three months before the deadline and they surely did not want to even leave a product in demand to get stuck at the dealer in case the customer cancelled the booking or so. What prevents the other manufacturers from not adopting such measures? Do they expect the whole stock of BS4 vehicles to get magically sold during the last week of March and it is just because of COVID19 they cant sell these cars and two wheelers?

[Guna]

Originally Posted by itwasntme

This has been discussed many times in other threads. There are multiple possibilities:

1. These vehicles can be exported to countries where similar BS-IV regimes are allowed. Example is Africa & LATAM and this is a real possibility for 2 wheelers.

With the 4 wheelers, biggest obstacle is that most of them are 'left hand drive' markets

[itwasntme]

Originally Posted by Guna

With the 4 wheelers, biggest obstacle is that most of them are 'left hand drive' markets

I also thought so but then came across this huge list :

List of RHD Countries (75!):

Asia
Bangladesh, Bhutan, Brunei, East Timor, Hong Kong, Indonesia, India, Japan, Macau, Malaysia, Nepal, Pakistan, Singapore, Sri Lanka, Thailand

Africa
Botswana, Kenya, Lesotho, Malawi, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Uganda, Zambia, Zimbabwe

Australia & Oceania
Australia, Christmas Island(Australia), Cocos Islands (Australia), Cook Islands (New Zealand), Fiji, Kiribati, Nauru, New Zealand, Papua New Guinea

Europe
Cyprus, Guernsey (UK), Ireland, Isle of Man(UK), Jersey(UK), Malta, United Kingdom

South America
Guyana, Surinam

West Indies
Anguilla (UK), Antigua and Barbados, Bahamas, Barbados, British Virgin Islands(UK), Cayman Islands (UK), Dominica, Grenada, Jamaica, Montserrat (UK), Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Trinidad and Tobago, Turks and Caicos Islands (UK), Virgin Islands (US)

On islands of the Atlantic Ocean
Bermuda (UK), Falkland Islands(UK), Saint Helena, Ascension and Tristan da Cunha (UK), South Georgia and South Sandwich Islands (UK)

On islands of the Indian Ocean
Maldives, Mauritius, Seychelles

[turbo]

https://www.youtube.com/watch?v=E-FpjuAOz18

Seems like a pretty straightforward thing to do.