Supreme Court To Decide Fate Of 50,000 BS-IV Vehicles Today

The apex court wasn't convinced of the permission sought by dealers about returning the unsold inventory of BS 4 vehicles to the manufacturers so that they could be exported to other countries.

New Delhi, July 29: The impact of the Covid-19 outbreak is evident with most sectors taking a hit, especially the automobile industry, as the Supreme Court on Wednesday will decide the fate of dealers regarding the sale of almost 50,000 BS-IV vehicles. The apex court last week didn’t seem convinced of the permission sought by dealers about returning the unsold inventory of BS 4 vehicles to the manufacturers so that they could be exported to other countries. Also Read: Honda City vs Hyundai Verna? Which Of The Two Mid-Sized Sedans Is A Better Bet In Terms Of Looks, Features And Drive Quality

The counsel appearing for the association told a bench headed by Justice Arun Mishra that there are some countries where the sale of BS 4 compliant vehicles are allowed.



What is Bharat Stage (BS) emission norm?

Bharat Stage (BS) emission norms are standards instituted by the government to regulate the output of air pollutants from motor vehicles. The BS-IV norms came into force across the country in April 2017.

As per the Supreme Court order BS-4 vehicles can’t be sold or registered in India from April 1, 2020.

As the new emission norms kicked in, several automakers including Maruti Suzuki, Tata Motors, Hyundai and Mahindra have already transitioned a major chunk of their product portfolio to BS-VI from BS-IV.

Automobile dealers had raised concerns that it will be tough to liquidate the inventory before the above-mentioned timeline prior to the implementation of new BS-VI emission norms.

What is the Supreme Court mandate?

February 14: Federation of Automobile Dealers Association (FADA)  has sought an application seeking an extension of registering BS 4 vehicles due to huge unsold inventory and slowing sales was rejected by the court.

March 27: At the time of nationwide lockdown imposed on March 25, the top court allowed the sale of 10 per cent of unsold BS-IV vehicles to make up for loss due to the lockdown. It had allowed the sale of BS-IV compliant vehicles for 10 days, barring Delhi-NCR, after the lifting of the nationwide lockdown.

July 8: However, on July 8 order the top court recalled the order allowing for an additional 10 days to sell BS4 compliant vehicles after finding out that over 2.55 lakh vehicles were sold, against the 1.05 lakh vehicles that the Court had ordered.

July 24: On July 24, the Supreme Court also gave the Government an extension for 10 days to file an affidavit with details of BS4 compliant vehicles that were registered after the 31 March 2020 deadline, against a plea made by the FADA. It will take a final decision after reviewing the facts.

What is the dealers concern?

The automobile industry is gearing up for the BS 6 transition but the recent lockdown has added to the woes of the auto dealers with the country under a lockdown state.

“If the Supreme Court offers no further relief then almost 50,000 BS-IV vehicles may lose its value and end up scrap. It will be the first time that a country will witnes its brand new cars being sold as scrap,” says auto expert Nabeel Khan.

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