BS4 stocks are to become obsolete from April 1 onwards as India adopts BS6, the most advanced emission norm in the world
As the financial year comes to a close, car and two-wheeler makers are scrambling to get rid of the remaining stock of Bharat Stage IV (BS4) vehicles offering a minimum of 15 percent discount.
BS4 stocks are to become obsolete from April 1 onwards as India adopts Bharat Stage VI (BS6), the most advanced emission norm in the world. However the Supreme Court has allowed the sale of only 10 percent of the BS4 stock for ten days after the lockdown is lifted.
Dealers of Honda Cars, Hyundai, Renault, Tata Motors, Nissan and Mahindra & Mahindra - which together make up the inventory of 15,000 BS4 passenger vehicles - are offering discounts ranging from Rs 42,000 to up to Rs 2.5 lakh.
Korean car brand Hyundai is carrying BS4 stocks of Santro, Grand i10, Hyundai Xcent having dealer-listed offers ranging from Rs 55,000 on the Santro to Rs 95,000 for the Xcent. The Tucson SUV carries the maximum discount of Rs 2.5 lakh. Other models like Creta, Elite i20 and Grand i10 Nios also have BS4 inventory.
With the new BS6 Amaze already in the market Honda Cars India is offering Rs 42,000 on the older generation BS4 Amaze manufactured in 2019 and early 2020. Likewise, there is a discount of Rs 62,000 on the petrol and diesel models of the City sedan. The Honda BR-V now comes at a discount of Rs 1.10 lakh while the Civic sedan is sold after a discount of Rs 1.25 lakh.
Dealers of Tata Motors are offering minimum discounts of Rs 90,000 on the Nexon and Rs 2 lakh on the Hexa on the BS4 grade stock. The Tigor compact sedan is sold at a discount of Rs 1 lakh. The Nexon and Tigor have been launched with BS6 engines while the Hexa awaits the upgrade.
French car brand Renault has also jumped the bandwagon offering discounts of Rs 2.3 lakh on the BS4 compliant Duster. Kwid, one of its best-sellers, is being sold at a discount of Rs 54,000 on select stock. The Captur SUV carries a total benefit of Rs 2.3 lakh while the Lodgy people mover has a benefit scheme of Rs 2.1 lakh.
SUV-specialist Mahindra & Mahindra has a number of offers on the BS4 grade vehicle. The Toyota Innova rival Mahindra Marazzo has a saving scheme valued at Rs 1.66 lakh while the flagship model XUV500 carries discounts of Rs 1.21 lakh. The XUV300 and the Scorpio carry benefits of Rs 64,000 and Rs 60,000, respectively.
These are discounts listed by the manufacturer, however they usually tend to get better at the dealerships. But, in light of the lockdown announced by the government that has forced showrooms to down shutters, dealers have stepped up the online booking activity.
Thanks to the central government’s initiative of taking the vehicle registration process online, allowing dealers to file vehicle sales with the Regional Transport Office (RTO), dealers are able to record sales despite the nation-wide lockdown.
But it is the two-wheeler industry that is hit the most. With an unsold inventory of 700,000 units as declared by the Federation of Automobile Dealers Association (FADA), the two-wheeler industry has the maximum number of BS4 stock.
This has made manufacturers such as Honda, Hero and TVS announce major discount schemes. Honda, for instance, is offering a discount of Rs 10,000 on the BS4 grade Activa 5G Rs.
Hero Motocorp, the largest manufacturer of two-wheelers in India has the maximum stock of BS4 models. The Delhi-based company, which earlier pleaded for a three-month extension to exhaust the inventory, is giving discounts of more than Rs 20,500 on scooters and select motorcycles.
TVS Motor Company, the maker of Apache bikes and Jupiter scooters is giving a cash discount of Rs 11,000 on the BS4 models. The XL100 moped is carrying a discount of Rs 7,500. The company has indicated a price hike of Rs 9,000 (depending on models) for the BS6 upgradation.