Supreme Court allows selling of only 10 per cent BS4 inventory

Supreme Court (SC) on Friday gave some relief to the auto industry for selling Bharat Stage 4 (BS4) inventory within 10 days amidst the current lockdown. However, SC has not allowed selling BS 4 vehicles in Delhi and NCR. However, the apex court has allowed makers to sell only 10 per cent of unsold BS4 inventory and that too, within 10 days. Thus with this, makers won’t be allowed to sell the remaining 90 per cent of the inventory in the domestic market now.

The customers, who have bought BS 4 vehicles before lockdown, will not be able to register the vehicles even after ease of the situation.

This development is likely to have a severe impact on two-wheeler makers like Hero Motocorp and TVS Motors as they are already sitting with an inventory of nearly four weeks and are concentrated mostly in the domestic market. However, CV and PV players have fewer inventories of around six to ten days, which could be sold in the domestic market or can be diverted to exports.

As a consequence of this, BSE Auto index was down by more than six per cent in today’s trading session.