Extension of BS-IV cut- off date will be unjust: Rajiv Bajaj

Rajiv Bajaj, managing director of Bajaj Auto, opposed plans to extend the deadline for clearing stocks of Bharat Stage (BS)-IV vehicles by the end of this month, saying such a move would unjustly penalise those who have complied with the law in letter and spirit.

Bajaj suggested defaulting firms reimburse their dealers for such stocks, if any, on April 1.

The statement comes in response to some of Bajaj’s competitors indicating that they plan to urge the government to extend the deadline because of the closure of dealers and lack of potential customers as a result of shutdowns across the country because of COVID19. Bajaj said, “Despite the impact of COVID -19 Bajaj expects to clear all of its BS-IV stocks by the end of this week through a combination of strong and timely promotional interventions by the company, supported equally and ably through on ground activation by its leaders.” He said his firm objected “to any extension for BS-IV stocks as this unjustly (penalises) those who have complied with the law in letter and spirit”.

Two-wheeler manufactures have been offering hefty discounts to sell existing BS-IV vehicle stocks, especially of mobikes, for over a month.

Bajaj suggested that action should be taken against defaulting original equipment manufacturers (OEMS). He said: “In our view, defaulting OEMS must reimburse their dealers for redundant BS-IV stocks, if any, on April 1.”

Recently, the Supreme Court refused to hear a plea by the Federation of Automobile Dealers Association asking for an extension of the deadline till May 31.

“DEFAULTING OEMS MUST REIMBURSE THEIR DEALERS FOR REDUNDANT BS-IV STOCKS, IF ANY, ON APRIL 1”