FADA To Co-ordinate With Banks And NBFC's To Ensure Financing Of BS-IV Inventory

The Federation of Automobile Dealers Associations (FADA) noted that things were under control till February-end and it was only in the first week of March that the dealers started getting circulars from state transport departments with deadlines for getting the BS-IV vehicles registered, according to media reports. Automobile dealers fear that they would not be able to liquidate the BS-IV inventory before the month-end deadline.

FADA's Appeal in SC for Extension of Sale beyond 31st of March for Dealer stock was not considered by the Hon'ble Court. With the weak demand situation, liquidation of complete BS-IV Inventory is the top focus and FADA has already appealed to all OEM's to Switch Over completely to BS6 despatches to dealers. The last 14 months has seen the one of its toughest times in auto sales. FADA has therefore requested OEM's through SIAM that any BS-IV vehicle billed, which are not against specific customer orders, to be on returnable basis to avoid financial loss to its Members.

FADA will also Co-ordinate with Banks and NBFC's to ensure financing of BS-IV inventory till the SC mandated date of 31st of March to ensure liquidation of the BS4 stocks and smooth transition to BS6 without any Financial Implication to any stake holder. With continued weak consumer sentiment and the overall economic situation, as well as the Upcoming BS-VI Transition, the near-term Demand situation will continue to be dynamic.

Powered by Capital Market - Live News