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EBM News

FADA asks automakers to shift completely to BS-VI compliant units

NEW DELHI: Federation of Automobile Dealers Association (FADA) on Saturday asked auto manufacturers to shift wholesale despatches to BS-VI compliant vehicles completely, with the Supreme Court dismissing its petition to extend deadline sale of BS-IV vehicles beyond April 1 in order to clear unsold inventories.

Considering the crisis that the industry is faced with, FADA said it is a ‘tough task’ to sell 100 per cent of the BS-IV vehicles currently in stock with its members in less than two months. “FADA, hence, appeals to all OEMs (original equipment manufactures) to shift completely to BS-VI vehicles for all wholesale despatches to dealers and stop further billing of BS-IV vehicles with immediate effect to dealers, thereby helping liquidation of the current BS-IV inventory for a smoother transition to BS-VI,” FADA president Ashish Kale said in a statement.

The counsel appearing for FADA cited the slowdown in the automobile industry and urged the court to extend the deadline by a month. “Kindly allow us to sell BS-IV vehicles to clear the stock,” argued the lawyer. However, a bench of Justices Arun Mishra and Deepak Gupta said that the court would not extend the deadline even for a day. The bench said the order was passed by the apex court one and a half years ago.

“You should not have produced BS-IV vehicles after that. Even after filing this application, you have produced these vehicles,” the bench said. In its October 2018 order, the apex court observed that any extension in this case would further worsen the health of the citizens, as the pollution levels have become critical.

Meanwhile, in an internal message circulated to dealers, the FADA president also advised dealers to plan liquidation of BS-IV inventory as per March 31 deadline for the sale and registration of BS-IV vehicles. 
The stricter Bharat Stage (BS) VI emission norms come into effect from April this year.