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Hero MotoCorp moves Supreme Court seeking extension of BSIV deadline

Updated : March 20, 2020 03:39 PM IST

India's largest two-wheeler manufacturer Hero MotoCorp has moved the Supreme Court seeking three more months to sell BSIV stock.

Hero MotoCorp has filed an interlocutory application in the Supreme Court which is yet to come up for hearing.

India's largest two-wheeler manufacturer Hero MotoCorp has moved the Supreme Court seeking three more months to sell BSIV stock.

A Hero MotoCorp spokesperson told CNBC-TV18 on Thursday, "Our inventories are currently at a level of less than two weeks with dealers including network. We are confident that the BS-IV inventory in the market will get liquidated ahead of March 31st deadline, as the run-up to festive days from March 25th is likely to boost retail off-take further".

Dealer sources that CNBC-TV18 spoke to say that Hero MotoCorp's inventory levels were higher than two weeks. Later in the day the company moved the apex court seeking more time to sell BSIV stock.

In a statement to the regulators late Thursday night, Hero MotoCorp said, "In view of the completely unforeseen development that have arisen out of the prevailing force majeure situation arising out of COVID-19 we have prayed for a relaxation of time period of three months as that has hampered all aspects of the industry. Ministry of Finance has also declared that COVID19 should be considered as a natural calamity and a force majeure".

The two-wheeler manufacturer has filed an interlocutory application in the Supreme Court which is yet to come up for hearing.

Sources say, Hero MotoCorp did reach out to other two-wheeler manufacturers for putting up a joint plea before the apex court, but Hero MotoCorp did not independently confirm this. There have been consultations among leading two-wheeler manufacturers but the industry is divided over the prospect of moving court.

Sources at TVS Motor Company which stopped BSIV production in January said they are well on course to liquidate their stock by March 31. Sources at Royal Enfield say the company does not have any BSIV stock left and Bajaj Auto also confirmed that they have minimal BSIV stock and do not feel the need for an extension.

Speak to CNBC TV18, Rajiv Bajaj, MD Bajaj Auto said, "I see absolutely no grounds for seeking any extension because we've had 3 years notice. Companies who are struggling are those that left it too late by continuing to produce BS4 vehicles well into Feb. This is management's failure to plan at best & greed at worst".

Bajaj further said, "It demonstrates scant respect for the law for the environment & for peers as any extension penalises those who having complied with the law find themselves at a competitive disadvantage with higher priced BS6 stocks".

Society for Indian Automobile Manufacturers has moved the apex court for directions to all Regional Transport Offices (RTO) to allow registration of BSIV stock till March 31, as several RTOs want to stop registration of BSIV vehicles a few days before the March 31. SIAM, however, is not seeking a grace period to sell BSIV vehicles after March 31.

CNBC-TV18 has learned from sources that there would be at least 6.5 to 8 lakh two-wheeler in the market. Two-wheeler dealers are particularly worried about the prospect of unsold inventory after 31st March.

Hero MotoCorp moves Supreme Court seeking extension of BSIV deadline

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