BS4 Vehicle Registrations & Sales Deadline Extended Past 1st April: But There’s A Catch!

The Supreme Court of India has announced that the deadline for sales and registrations of BS4 vehicles in India has been extended till the 24th of April 2020. However, there are certain conditions to this extension.

BS4 vehicle Sales & Registrations Deadline Extended Past 1st April 2020: Additional 10 Days Past Lockdown Granted

According to the supreme court ruling, dealerships can sell only 10 per cent of their total unsold inventory. The Supreme court also stated that all those BS4 vehicles which have been sold but are yet to be registered are also eligible for registrations as well.

BS4 vehicle Sales & Registrations Deadline Extended Past 1st April 2020: Additional 10 Days Past Lockdown Granted

The apex court as given dealers 10 days post the ‘India lockdown', to sell their BS4 inventory. This is against the 30-day relaxation period as initially requested by FADA. The supreme court also stated that this ruling is not applicable to any dealerships situated in Delhi-NCR region.

BS4 vehicle Sales & Registrations Deadline Extended Past 1st April 2020: Additional 10 Days Past Lockdown Granted

The Indian government had previously announced a ruling that post 1st April 2020, no BS4 vehicles can be sold or registered in the Indian market. The country was supposed to shift mandatorily to BS6-compliant vehicles.

BS4 vehicle Sales & Registrations Deadline Extended Past 1st April 2020: Additional 10 Days Past Lockdown Granted

However, the coronavirus outbreak in India has caused a lot of complications for the Indian auto industry. The Indian Prime Minister Narendra Modi announced a complete lockdown in India for a period of 21 days, between the 25th March to 14th April 2020.

BS4 vehicle Sales & Registrations Deadline Extended Past 1st April 2020: Additional 10 Days Past Lockdown Granted

The result of this was the complete closure of dealerships across the country. This has caused a huge number of BS4 vehicles to be left unsold. Reports suggest that there might currently be over 7 lakh bs4 two-wheelers, 12000+ bs4 four-wheelers and over 7000 bs4 commercial vehicles all over India; this accounts to a cumulative amount of almost Rs 6,300 crore.

BS4 vehicle Sales & Registrations Deadline Extended Past 1st April 2020: Additional 10 Days Past Lockdown Granted

Hearing the ruling of the supreme court, dealerships have been coming up with different strategies to sell the BS4 vehicles. This includes registering them under their names and selling them as pre-owned vehicles at a later stage. Some dealerships have also suggested the company take back the unsold units and use them for spares.

BS4 vehicle Sales & Registrations Deadline Extended Past 1st April 2020: Additional 10 Days Past Lockdown Granted

Thoughts On The BS4 Vehicles Registration Deadline Extension

The supreme court ruling will definitely be a big blow to the dealerships across India. The amount of unsold inventory could easily cause a number of dealerships to file for bankruptcy as well.

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Read more on: #auto news
Article Published On: Friday, March 27, 2020, 18:54 [IST]
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