FADA approaches SC seeking BS-IV vehicle sales extension till 31 May

Image
Capital Market
Last Updated : Mar 17 2020 | 6:31 PM IST

The Nifty Auto index slipped 0.68% to 5,803.85.

Among index components, Tata Motors (down 6.09%), Mahindra & Mahindra (down 3.94%) and Bajaj Auto (down 3.22%) declined.

Eicher Motors (up 3.68%), Hero MotoCorp (up 2.68%), Escorts (up 2.57%), Maruti Suzuki India (up 2.12%), Ashok Leyland (up 1.66%) and TVS Motor Company (up 0.88%) advanced.

The Federation of Automobile Dealers Associations (FADA) on behalf of its members has once again approached the Supreme Court and has filed an Interlocutory Application along with an Application seeking modification in the writ petition in the matter of M. C. Mehta Vs Union Of India & Others, dated 24 October 2018 whereby it has been directed that "no motor vehicle conforming to emission standard Bharat Stage-IV shall be sold or registered in the entire country with effect from 01 April 2020."

FADA President Ashish Harsharaj Kale said, "Post our Initial Application, necessitated due to huge unsold BS-IV inventory and slowing sales, getting rejected by the Apex Court on 14 February 2020, there has been a drastic change in circumstances in conducting business as usual. SARS-CoV-2 a.k.a coronavirus (Covid-19) which emerged in Wuhan in the Hubei province of China has spread rapidly across the Globe and also in India.

Following this in the past week there has been drastic drop in sales and customer walk-ins have reduced to a trickle as caution sets in due to fear of spreading of the virus. Counter sales has fallen by 60-70% across auto dealerships in these past few days.

The situation has worsened in the past 3-4 days with partial lockdown 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."

He further added, "Owning to situations which are beyond our control and the fact that many of our members may face dealership closures if leftover with unsold BS-IV Stocks, FADA has once again approached the Apex Body with a request for permission of sale and registration of BS-IV vehicles till 31 May 2020 and hopes to get an urgent hearing in the Supreme Court owing to the criticality of the issue and the deadline of 31 March approaching fast."

Powered by Capital Market - Live News

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Mar 17 2020 | 4:18 PM IST

Next Story