Doublewhammy of coronavirus and BSIV batter auto sector

Source : IANS
Author : IANS
Last Updated: Wed, Mar 18th, 2020, 17:11:57hrs
Doublewhammy of coronavirus and BSIV batter auto sector

New Delhi: The Already battered automobile dealerships in the country faces the double-whammy of low sales accentuated by COVID-19 and the policy on selling old inventories.

Accordingly, there plans to sell-off BS IV inventories are now all but lost as the pandemic has eroded footfalls and enquiry levels to a trickle.

Industry estimates show counter sales dropping by 60-70 percent across auto dealerships in the past few days. Besides, the fast approaching deadline to sell off all BS-IV inventory is another pain point that the dealers are complaining about.

Also Read: COVID-19: Supply chain distribution to hamper auto production

Consequently, the Federation of Automobile Dealers Associations (FADA) has approached the Supreme Court to extend the deadline till May 31st. In a statement on Tuesday FADA President Ashish Harsharaj Kale said: "The Situation has Worsened in the Past 3-4 Days with Partial Lock down Situation in Many Towns and Cities and Few District Magistrates have started issuing notices of closure of shops and establishments including Auto dealerships to stop the spread of virus."

"Owning to situations which are beyond our control and the Fact th at Many of our members may Face Dealership Closures if Leftover with Unsold BS-IV stocks, FADA has once again approached the Apex Body [Court] with a Request for permission of sale and registration of BS-IV vehicles till 31st May'20 and hopes to get an urgent hearing in the Hon'ble Supreme Court", as the "criticality of the issue and deadline of 31st March is approaching fast."