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Old 21st May 2020, 22:49   #16
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Re: Maruti Suzuki writes off BS4 inventory worth Rs. 125 crore

Can't Maruti export these to Bangldesh, SL or any other SAARC/Africa country? Rather than managing logistics of writing them off and selling the parts, it'd make sense to ship whole cars to the countries where pollution norms are lax.
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Old 21st May 2020, 23:51   #17
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Re: BS6 / BSVI emission norms coming in April 2020!

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Originally Posted by bivin View Post
No where on the article does it say MSIL wrote off 125cr worth of obsolete cars. They say it was car parts worth that value. The article specifically says there were no unsold BSIV cars as per Maruti
You are absolutely right about the article which talks about parts not cars.
I'm confused as MSIL has stopped selling BSIV cars but is still servicing them (majority of the cars on road are BSIV). And these BSIV cars would still need repairs. So, why write off those parts?
Is it another example of tax saving (or evasion to be specific)?
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Old 22nd May 2020, 00:25   #18
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Re: Maruti Suzuki writes off BS4 inventory worth Rs. 125 crore

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Originally Posted by PrideRed View Post
While the write off here does not necessarily mean just cars (or none), I wonder how difficult/expensive is it for a manufacturer to convert a BS4 car to BS6? This might not be possible at dealer level but I strongly believe it should be easy job for a manufacturer.

Converting a BS4 to BS6 would require a complete readjustment of the assembly line, the currently running production line will need to be slowed, as the buffer stock upstream of the current assembly line are affected, and and if the cars are in Dealership stockyard, it also involves a logistical problem and also would need new space to store and work on, even the quality may not be ensured in such a setup.

besides a lion's share of those cars could be the Diesel ones for which Maruthi does not have the BS6 Technology ready.
there is the issue of market acceptance of such cars which the companies may not like to risk.
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Old 22nd May 2020, 01:33   #19
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Re: Maruti Suzuki writes off BS4 inventory worth Rs. 125 crore

I'm not sure how the accounting system works in Automobile companies however I'm sure that write off is just to get the income tax benefit. They most probably have some or the other tricks on their shelve to utilize/sell the cars.
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