Vehicle Dealers Stuck With BS4 Stocks Ahead Of Month-End Deadline

Automobile dealers are worried that they will be stuck up with unsold Bharat Stage IV (BS 4) vehicles after the end of this month, the deadline to sell and register BS4 vehicles.

The Federation of Automobile Dealers Association (FADA) said that the BS4 inventory of 2-wheelers remain a ‘very serious’ concern. Customers are seen holding on to their purchases in the hope of distress sales towards the end of March and also the number of walk-ins have reduced due to the coronavirus scare. Also, the massive drop in share markets has added fuel to fire.

However, there is a turn-around. Dealers will be able to convert unsold BS4 stocks into pre-owned vehicles and sell them to new buyers at BS4 or lower prices. The price difference between BS6 and BS4 is roughly 10-15 per cent and this could help drive sales of the unsold stocks.

Experts said the consumers won’t complain as they will get a brand new vehicle with zero km driven even if it is technically a second-hand car.

The dealer will have to register the vehicle in somebody’s name by the end of this month. This was done during the BS 3 to BS 4 transition.

There is no ban on selling second-hand BS4 vehicles.

While most manufacturers such as Maruti have stopped making BS4 vehicles, some manufacturers, especially in the commercial sector, reportedly have unsold stock which will be sold off using the same scheme.