Some state governments have issued order to shut down car and bike dealerships and workshops to curb the spread of coronavirus. This notice comes with less than 15 days left for BS6 deadline, which could leave large stocks of BS4 vehicles unsold.
The Coronavirus pandemic has wrecked havoc across the country. Cities are going into lockdowns and the economy is also being severely affected. The automobile industry is of course no exception and now, some state governments have ordered all two-wheelers and four-wheeler dealerships and workshops to halt operations to prevent the spread of coronavirus.
Now this raises quite some concern as the deadline for the BS6 emission norms in just about 15 days away on April 1. If dealerships shut doors now, they will probably be left with large stocks of unsold BS4 vehicles. Dealership associations and major automotive organizations will now appeal to the Supreme Court to extend the deadline for selling BS4 vehicles.
In states like Orissa and Maharashtra, dealerships have been ordered to temporarily shut operations. Currently, all vehicle dealerships were concentrating on clearing their BS4 stock. Moreover, most car and bike dealers have already acknowledged that footfall in the showrooms has decreased anyway due to the coronavirus outbreak. This pandemic is the latest hit to the automobile industry in India which has already been suffering from a slump since 2019.
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A slump in demand last year has already created a stock of unsold BS4 vehicles. The switch to BS6 emission norms has worsened the situation for quite a few manufacturers who anyway has had to invest large amount of money in research and development.
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The COVID-19 virus is a starin of coronavirus that was unknown to humans until just last year. Symptoms include respiratory illness, cough and cold, fever and in worst cases, even death. It has affected more than 1.82 lakh people and resulted in 7,100 deaths globally. The government’s move is understandable and is actually correct to curb the spread of the disease. However, it will definitely leave an economic impact on the automotive industry. Governments around the world are working on containing the spread of the virus. They are also trying to balance shut downs and while maintaining economic operations.
