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FADA knocks SC’s door to protect dealer interest in BS6 transition

FADA knocks SC’s door to protect dealer interest in BS6 transition

FADA knocks SC’s door to protect dealer interest in BS6 transition

The Federation of Automobile Dealers Associations (FADA) on behalf of its members filed an Impleadment Application in the Supreme Court of India along with an Application seeking modification in Apex Court’s order in Writ Petition No. 13029 of 1985 in the matter of MC Mehta Vs Union Of India and Others, dated 24th 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 01.04.2020.”

FADA President Ashish Harsharaj Kale Said “With the Current timeline of All India BS-VI Fuel Availability of 1st April’20, most Manufacturers will shift to 100% BS-VI Vehicle Production only by end February’20 or 1st week of March’20.

Looking at this Timeline of BS-VI Production and the current fluctuating demand situation, despite putting in the Best of Efforts, there is a Possibility that many of our members are not able to ensure 100% Liquidation of BS-IV Inventory purchased by them in the course of business before the deadline of 1st April’20 fixed by the Honourable Supreme Court.

FADA members range from Large Dealership Groups to Family Run Small Scale Dealerships operating in the remotest corners of our Country and are operating on 3%-5% Gross Margins of the Cost of the Vehicles. Despite their Best Efforts to Sell, if Dealers are left with any Inventory of BS-IV on 1st of

April’20, many of them will face Financial Hardships which could even threaten the Existence of their Business.

Hence, we have appealed to the Apex Court to Protect the Inventory and in turn the Dealership Survival of our members and allow us to Sell and Register Inventory Purchased before 1st of March’20, which remains Unsold by the 31st of March beyond the current deadline of 1st April’20.”

Earlier, Federation of Automobile Dealers Associations (FADA) released the Monthly Vehicle Registration Data for the Month of November 2019. Once again Appreciating the Efforts of all our OEM’s in regulating Wholesale Supplies, FADA is quite Confident that the Inventory in all the three categories, viz. 2W, PV and CV will soon be in the range of Our recommended and requested Optimum range of 3 weeks.

 

 

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Deepika Chauhan

Hello, I am Deepika Chauhan an automobile enthusiast. Presently working as a Media Manager and Writer. My aim is to guide and teach ways to manage, grow and scale business.
Earlier, I have been a part of Asian News International (ANI) as a Sub-editor cum Producer.

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