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Lockdown 2.0: what it means for vehicles and the auto Industries

Lockdown 2.0: what it means for vehicles and the auto Industries

Lockdown 2.0: what it means for vehicles and the auto Industries

Government guidelines on lockdown 2.0 have given some relief to those who have to go out in their vehicles. The guidelines state that private vehicles will be allowed to purchase emergency services and essential items, including medical and veterinary care. In such cases, a passenger may be allowed to sit in the back seat in addition to the driver of a private vehicle in a four-wheeler. In the case of two-wheelers, only the driver of the vehicle is allowed.

The new lockdown guidelines also allow some self-employed professionals to have a direct impact on the lives of ordinary people. The good thing is that the motor mechanic has also been included in this list. If you are facing any problem in your car, you can seek help from your local mechanic.

The new guidelines will not be applicable in areas which have been delimited by states, union territories and district administrations in view of the epidemic.

BS4 vehicle sales

However, the question of what will happen to unsold inventory of BS4 vehicles still remains. The Supreme Court recently allowed the sale and registration of BS4 vehicles for 10 days after the end of the corono virus lockdown, which was to end on 15 April. Vehicle dealers were permitted to sell only 10 per cent of BS4 stock and subject to registration.

Lockdown 2.0: what it means for vehicles and the auto Industries
Lockdown 2.0: what it means for vehicles and the auto Industries

Now, with the lockdown going up, the showrooms will also be closed until 3 May. The remaining BS4 vehicles can only be sold from May 4 to 13. According to the FADA, there are more than 7 lakh BS4 vehicles in India, including two-wheelers that have not been sold.

Some automakers have said they will withdraw their remaining BS4 inventory. But still, it is unlikely that all the remaining BS4 vehicles will be sold.

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The month of March was one of the worst months of the auto industry by sales. However it is now expected to resume production operations in some plants with a limited workforce. But the cost of unsold and outdated BS4 inventory will only add to the crisis of an already decaying industry.

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