Coronavirus Pandemic: Two-Wheeler Companies Struggling To Clear BS4 Inventory Worth Rs. 4,600 Crore

As the entire country is currently facing a lockdown, the domestic two-wheeler market has been facing several restrictions because of the novel Coronavirus Pandemic. Currently, various two-wheeler companies are under pressure to clear out the remaining BS4 inventory ahead of the BS6 transition, which will come into effect from April 1, 2020. The bike manufacturers are left with BS4 inventory worth Rs 4,600 crore with minimal hope of liquidating the same. Moreover, the two-wheeler makers and dealerships are also providing massive discounts to clear out the huge inventory of approximately 8,35,000 units.

Also Read: Coronavirus Pandemic: Jawa Motorcycles Production Stopped; Perak Deliveries Delayed

3050le98

Two-wheeler manufacturers have been facing several difficulties in clearing out the BS4 stocks

With the majority of dealerships across several districts and cities under lockdown, the customers are refraining to make any visits to the outlets, hence footfalls at dealerships are zero. Moreover, many cities are even under curfew, as the government has instructed all the citizens to curtail non-essential movement. The government has also called for social distancing urging the citizens to remain at home during this phase. Apart from dealer association - FADA, companies such as Hero Moto and HSMI are knocking at the doors of the Supreme Court seeking relief in liquidating the BS4 stock beyond the specified deadline of March 31, 2020.

The two-wheeler dealerships have been impacted by the economic slowdown as well as tight liquidity circumstances during this fiscal and the matters are likely to become further worse.

Also Read: Great Deals On Offer For BS4 Premium Bikes

carandbike approached The Federation of Automobile Dealers Associations (FADA) to ask about the BS4 two-wheeler inventory. A spokesperson said, "The Two-Wheelers inventory at dealerships across India is approximately 8,35,000 units valued at around 4,600 Cr.

Shamsher Dewan, Analyst with investment information and credit rating agency ICRA said, "In all likelihood, there will be no relaxation from the government as far as the deadline for BS6 implementation is concerned. There are a few options, for example, the government may give a reprieve under a new ordinance, the OEMs may recall the BS4 vehicles and sell them in export markets, like Nepal and Africa, but there will be cost implications. Then, OEMs can maintain existing BS4 stock for spares, but will have cost implications, and the last option will be to recall the stock and upgrade to BS6, but that is a technologically grey area. The best option, we feel, will be to sell the BS4 stock in export markets, but the cost to recall and export the BS4 stock will have to be borne by the manufacturers."



from CarandBike - Latest News

Comments

Post a Comment

Popular posts from this blog

Harley-Davidson Streetfighter Spotted In Flesh For The First Time

Image
Harley-Davidson unveiled a range of new motorcycles last year that included an adventure tourer, streetfighter and Custom range. This, along with the LiveWire electric motorcycle defines the new-age 21st century offerings from the manufacturer as it taps into newer markets and caters to an evolving customer base. Now, giving a glimpse of the new models out in the open, the new Harley-Davidson Streetfighter was spotted in the prototype version at what seems to be a trade show in the US, giving a good glimpse at motorcycle looks like in flesh. While board says 'Styling Prototype', the production-spec version of the Streetfighter is likely to stay identical to the model showcased here. In addition to the Streetfighter, the Pan America was also showcased at the same event. The production spec versions of both bikes could be unveiled at EICMA this year. Also Read: Harley-Davidson Livewire To Be Unveiled In India In August The Harley-Davidson Streetfighter is a completely new mot
Read more

Brixton 1200 To Rival Triumph Bonneville T120

Image
A 1200 cc modern classic with similar design lines as Triumph's iconic Bonneville series, has reportedly been cleared for production. The bike was showcased as a concept at last year's EICMA motorcycle show, and from the looks of it, this is a model developed in China with the Triumph Bonneville T120 in its sights. The Brixton brand though is part of Austria's KSR Group, which imports bikes from several Chinese manufacturers, including CF Moto. And while the new Bonneville rival will be manufactured in China, the design and engineering has been created at KSR's design centre in Krups, Austria. Also Read: Triumph Bonnville T120 First Ride Review The Brixton 1200 cc motorcycle has not been named yet, or a launch timeline announced So far, the company has not committed to a launch date yet, but says that it will eventually make it to production. And from the looks of it, that may well be sometime later this year, maybe even at the EICMA 2020 show in Milan, Italy, in
Read more

Zongshen Cyclone RX6 Based On Norton 650 Nearing Completion

Image
While there still doesn't seem to be a buyer for iconic British brand Norton Motorcycles which went into administration in January this year, the firm's 650 cc parallel-twin seems to be finding life in China. While Norton apparently sold off the engine rights of its 961 engine to China's Jinglang just before the brand went into administration, the deal for the 650 cc engine was finalized way back in 2017 with Chinese giant Zongshen. The 650 cc parallel-twin engine was due to be used in Norton's Atlas and Superlight models, but now it looks like that engine platform will make its debut in a Zongshen motorcycle, called the Cyclone R6. Also Read: How Much Is Norton Motorcycles Worth Now? One of the patent designs shows the Cyclone RX6 with full touring accessories and luggage Two prototypes fitted with the 650 cc parallel-twin engine were shown in China late last year, on the Zongshen Cyclone RX6 adventure bike and the RX6 sport tourer. Both bikes used Zongshen-made
Read more