FADA Approches Apex Court To Protect Dealer Members Interest In BS-VI Transition

The Federation of Automobile Dealers Associations (FADA) on behalf of its members filed an Impleadment Application in the Honourable Supreme Court of India along with an Application seeking modification in Honourable Apex Court’s order in Writ Petition No. 13029 of 1985 in the matter of M. C. Mehta Vs Union Of India & 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 Honourable 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.”