BIG CON­FU­SION OVER BS IV, BS VI STAN­DARDS

CMD, Prem­sons Mo­tors, Ranchi, deal­ers in Maruti Suzuki ve­hi­cles

India Today - - CASE STUDIES - -Amitabh Sri­vas­tava

What? Sales have gone down 10 per cent quar­ter-on-quar­ter in Bi­har and Jhark­hand. But they haven’t laid off any staff yet Why? “The prob­lem is twofold. A sec­tion of po­ten­tial cus­tomers is fac­ing fund short­ages. The down pay­ment of 20 per cent to qual­ify for a loan is too steep for them. This could be be­cause of the over­all neg­a­tive sen­ti­ment” “The biggest con­fu­sion is about con­ver­sion from BS IV to BS VI. As BS IV ve­hi­cles can’t be reg­is­tered af­ter March 31, 2020, a ma­jor­ity of buy­ers are un­will­ing to buy them. This has cre­ated an in­ven­tory back­log. Sec­ond, not many buy­ers are well in­formed about th­ese stan­dards. They’ve prob­a­bly de­cided to wait till the dead­line passes to pur­chase a ve­hi­cle What next? “We have re­duced stocks to min­imise in­ter­est bur­den. We used to keep 60 days of stocks, but we have brought it down to 45 days and are try­ing to re­duce it fur­ther”

SOM­NATH SEN

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