[Nav-i-gator]

Originally Posted by drmohitg

In the literal sense yes. I am not claiming any higher knowledge but is a dealer really into a position to dictate the terms of a contract with a car manufacturer?
I recently opened a bank account. It is a sort of contract when I sign on the dotted line. Can I change the terms and negotiate with the bank if I don't like a few points. There is theory and then there is practicality of it.

Well I agree, and personally I don't have any issue with extension of sales deadline. It does not impact me, neither it does to most of the people out there. And that's the reason. There are far more severe impacts on far more people to be dealt with during these times. Even BS6 cars sales will drop and some dealers may not survive regardless. Least so, the ones who were not able to sell off BS4 cars in time. Managing things that will lead to normalcy as fast as possible is what Govt & courts need to work on right now. Once that returns, cars will start selling, and losses incurred today will be covered in normal course of business.

[Bibendum90949]

I voted Yes. These are unprecedented times and dealers deserve some leeway. Let's assume these vehicles can't be sold post March 31st. It would end up as nothing but scrap. If that happens won't that be a waste of country's resources ?

I know there would be work arounds like registering the unsold cars in dealer's name or even in their kith and kin's name and later reselling them (recovering at least the billed cost) which no law is preventing them to do so.

With the present negative sentiments in the industry coupled with partial lock down I wonder what can a one month extension do to the cause.If they can't find buyers for this old inventory now, it's highly unlikely they'll salvage the situation during the additional one month they're vying for.

[Slick]

Voted Yes,

My Views -

Some have rightly mentioned that the dealers could have planned this better. Though if I take all the following into account.

1. Existing economic slowdown prior to Corona onslaught
2. Automobile industry downturn
3. The impact of Corona itself on world economy that will definitely result in huge financial losses all around.

We need to keep businesses & in turn jobs alive. These are indeed extraordinary times.

Such an exception, given by the Government, would not hurt anyone but if not given will possibly kill some dealerships and related jobs. Now is not the time for being stringent, it is the time to be considerate.

Though it should definitely be at the discretion of the Government as the date was declared well in advance. The dealers had also experienced BS3-BS4.

Originally Posted by Nav-i-gator

provided dealers can't fire any staff till the end of the extension period (since the threat of job losses is perpetuated as the prime reason/threat). How about that?

Like this suggestion.

- Slick

[navpreet318]

Originally Posted by Nav-i-gator

Contracts. Both parties sign on it with full consent. How is Govt/court involved in this now? When a person is hired, company and employee enter into a contract. Can a person being fired go to the court and ask for extension/continuation of his employment till the time he/she is out of all debts, citing bleak economic scenario/Recession?

I would say - let the Govt extend it till end of the year or even further. With a caveat that BS4 stocks can be sold at billing price to dealers (so that they can sell it at no profit and no loss) and provided dealers can't fire any staff till the end of the extension period (since the threat of job losses is perpetuated as the prime reason/threat). How about that?

We are asking that the date be extended for the stock with us. Not to have more stocked dispatched. Plain and Simple.

I cannot understand what kind of an analogy you are making between hiring and firing employees.
No where is it mentioned that the company can force any stock on us. do you think that business goes as per the black and white? Nope. It goes only and only by interpersonal relationships and being obligated or making someone obligated to do something or bear something.

Dealerships are no where asking to sell stock if any at the plants. Its all a matter of stock which is paid and is at the dealerships.

Threat of job loss? What are you making us dealers to be? Who says and where is it mentioned in our writ petition that dealers will shut shop?
Who is issuing this kind of a blackmail?

[Kosfactor]

Originally Posted by navpreet318

These won't be the kind of arguments in the court and they won't make Statements like "why didn't dealers give non sellable stock for free or major discount" because of which I won't have to ask who are you to make a judgement.

It is sad that we now have to approach the court for things like this. It would have been nice to ask the elected representatives for relief from situations like this and they are able to act and resolve this problem.

The economic situation has curbed spending to a great deal and of course the big ticket purchase items like Automobiles are slow moving overall.Any clue how big are the numbers at stake here? Is it commercial vehicles that are higher in number ?

[Nav-i-gator]

Originally Posted by navpreet318

We are asking that the date be extended for the stock with us. Not to have more stocked dispatched. Plain and Simple.

I cannot understand what kind of an analogy you are making between hiring and firing employees.
No where is it mentioned that the company can force any stock on us. do you think that business goes as per the black and white? Nope. It goes only and only by interpersonal relationships and being obligated or making someone obligated to do something or bear something.

Dealerships are no where asking to sell stock if any at the plants. Its all a matter of stock which is paid and is at the dealerships.

Threat of job loss? What are you making us dealers to be? Who says and where is it mentioned in our writ petition that dealers will shut shop?
Who is issuing this kind of a blackmail?

1. Can be sold at billing price means dealer can sell at price it "was" billed to the dealership. So as no loss to the dealership. I was on your side on this.

2. Read all comments on this thread and the thread on Auto industry slowdown. More than half would suggest "dealerships will close and there will be job losses". I never said that FADA is issuing such threat. Such threats are always subtle, unsaid but perceptible. Can dealership shut shop without job losses? If it can, no one will give a hoot whether it is closed or working. Cars not selling is no one's issue, job losses are.

3. Banning any job cut till the time dealership is selling BS4 stocks beyond he deadline is just a suggestion. Not to you specifically, but job loss is the real reason Govt or court will even listen to FADA. That's the reason it is mulling about reliefs and packages to aviation, telecom and every industry that is in trouble.

[pganapathy]

I voted YES, but unlike most people here who worry about the economy and car companies and dealers possibly going bust, I feel we should be worried more about the earth and atmosphere. If we need to recycle or scrap the existing cars, it produces more pollution. It is better if we sell them

[lapis_lazuli]

Seems HERO is approaching SC on behalf of dealerships to allow sale of BS4 vehicles for 3 more months post the expiration of deadlines.

https://www.livemint.com/companies/n...682528830.html

Is it only me, who is noticing an excessively rigid SC panel, of late? AGR, Emissions, 10 year rule, BS4...without actually enforcing the tackling of the root cause in each of the cases?

[_chikku]

From the link

"Despite the known sluggishness in demand Hero kept producing and pushing BS-IV grade models into the market right till the middle of February even though the industry was going the other way.

As per data shared by the Society of Indian Automobile Manufacturers (SIAM) Hero Motocorp’s supplies to its dealers came down by just 5.6 percent in December and 14 percent in January as against 17 percent and 16 percent recorded by the industry during the same two months, respectively.

This means that even as the industry cut down production of BS-IV grade models Hero continued to produce more than the industry standard. The company ignored the telltale signs, which is evident from the statement made by one of its senior executives during an analyst conference call."

https://www.moneycontrol.com/news/te...t-5057581.html

[ani_meher]

Originally Posted by _chikku

From the link

As per data shared by the Society of Indian Automobile Manufacturers (SIAM) Hero Motocorp’s supplies to its dealers came down by just 5.6 percent in December and 14 percent in January as against 17 percent and 16 percent recorded by the industry during the same two months, respectively.

This means that even as the industry cut down production of BS-IV grade models Hero continued to produce more than the industry standard. The company ignored the telltale signs, which is evident from the statement made by one of its senior executives during an analyst conference call."

But it was not illegal. The mandate was not two tiered, that stop producing by December 19 and stop selling by March 20. A manufacturer could produce 100% BS4 vehicle till 31st March 2020 and then eat up that inventory as loss the next day.

This situation is particularly because of Corona virus spread. Our government has seized all business operations, it is only fair to allow proportionate extension for businesses to catch up.

[Garth]

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[Sheel]

I sympathize with dealers, but it is the manufacturers which are the rogues here. They know their sales, they know their dud products, they know how much time / effort / money will it take to convert a BS-4 to a BS-6, but no, they continued to milk the [gullible] dealers.

Few manufacturers give a choice of load [variants / models / colors to choose], other manufacturers do not. In that case, it is the dealers who suffer.

Government / Courts should have questioned the manufacturers, dealers are merely making a sale, they are brokers and have no say.

I support FADA this one time.

[Sahil]

Till a week back I would have strongly voted No. But now an extension is justified and frankly obvious. Even if one is about to close on a BS4 car or bike this week how will it get registered with RTOs under lockdown? And how would delivery even be done with transport under lock down.
There needs to be an extension of atleast 3 months after which there needs to be a review for extension. Govt has to be fluid at this point.

[volkman10]

Originally Posted by Sahil

-- Govt has to be fluid at this point.

It will be the SC's decision.

SC could hear plea on extension of registration of BS-IV vehicles on March 27.

Link

[Turbanator]

It should happen. Most likely, FY will now close at June End

https://www.ndtv.com/india-news/coro...-stays-2199480