Automobile Dealers Come Out In Support Of Lockdown Extension

Owing to the Coronavirus pandemic, the nationwide lockdown which began on March 25th, 2020 has now been extended till May 3, 2020. This also means that all automobile dealerships across the country will remain closed till that time. Many of these dealerships have a huge pile of BS4 stocks lying with them and were hoping that some of these stocks could be sold once the lockdown lifts. This was in adherence of a recent order of the Hon'ble Supreme Court of India which said 10 per cent of the unsold BS4 stocks of cars and bikes can be sold within a period of 10 days once the lockdown lifts.

Also Read: Automotive Dealerships Facing Severe Losses In Lockdown

The extension of lockdown means the dealers will have to wait much longer to sell these stocks and also begin their daily operations. But for now they have no option but to wait and hope things get better. Commenting on the lockdown extension, Federation of Automobile dealers Association (FADA) President Ashish Harsharaj Kale said, "Health and security of our citizens is paramount and being a responsible and law abiding Association, FADA will strictly follow the lockdown as it has been doing till now. Auto Dealers look forward to our country getting out of lock down on the 3rd of May for business to resume." He also added that service assistance to all essential goods & services vehicles will continue by all dealer members 24x7 as was during the previous lockdown period.

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FADA has demanded that ESIC pay the salaries of dealership staffs for lockdown period.

FADA has also written to the Prime Minister recently asking for financial assistance for the dealer community in wake of the current crisis. The long list of demands included GST cuts on Automobiles, priority sector tag and also requested that for the lockdown period Employee State Insurance Corporation (ESIC) should pay the salary of staffs working at the dealerships. Though there has been no response as yet, FADA is hopeful that the Government will soon announce a financial package for support to the business community during and post lockdown period.



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