Bajaj Auto opposes move to extend deadline for clearing BS-IV stocks

Two-wheeler major Bajaj Auto has opposed the move to extend the deadline for clearing stocks of BS-IV two-wheelers by the end of March because of the coronavirus (Covid-19) spread, saying that this “unjustly penalises those like Bajaj who have complied by with the law in letter and spirit”. It also suggested that defaulting companies reimburse their dealers for such stocks with them if any, on April 1.

The move is in response to some of the competing two-wheeler companies who are planning to push the government for an extension of the deadline due to the closure of dealers and lack of potential customers due to the health crisis across the country. 

The automobile companies are supposed to stop selling any BS-IV vehicles by April 1 after which, all vehicles will be sold according to the BS-VI norms. The two-wheeler vehicle manufactures have been offering hefty discounts to sell their stocks for more than a month now. Earlier, the Supreme Court (SC) had refused to hear a plea by the Federation of Automobile Dealers Association for an extension of the deadline till May 31.    

Speaking on the issue, Rajiv Bajaj, Managing Director of the company points out: “Despite the impact of Covid-19, Bajaj expects to clear all of its BS-IV stocks by the end of this week through a combination of strong and timely promotional interventions by the company”. 

However, Bajaj added that they “continue to object to any extension for BS-IV stocks as this unjustly penalizes those of us who have complied with the law in letter and spirit.”  

Rajiv Bajaj also suggested action against the defaulting original equipment manufacturers (OEMs). He further said, “In our view, defaulting OEMs must reimburse their dealers for redundant BS-IV stocks if any on April 1”.