Posted On : 04 Apr, 2020
The automotive industry was already experiencing a variety of head waves through the year and shrinking revenue was under pressure due to the increased risk of losses due to indirect inventory after the BS1 criteria came into force on April 1 Faced, Chattopadhyay said.
People are already in their low confidence to buy BS6 new models but suddenly due to COVID-19 out break they are now end up to buy .Companies, which started selling BS6 models , are not increasing their BS6 models prices due to customers interest level.
BATTLE IS STILL GOING ON Against CORONAVIRUS (covid-19)
Slowdown in Complete economy is the reason in the shortage of price BS6 vehicles, Automakers might be forced by lockdown to drop their vehicle prices near to BS4 vehicle to attract buyers.
“The outbreak of auto sector had worsened significantly in March, as they were in the midst of a change in emissions norms from 1 April” --- Industry experts said.
Companies like TOYOTA, started selling BS6 models January onwards decided not increase prices However, Customers as buying BS6 vehicles confidence was already low.
The manufacturers have increased the cost to only Rs 80,000 for the customers and self-absorbed the remaining cost by Rs 70,000. Apparently every manufacturer will have to price BS6 if the market calls for it.
A senior car company official said, "We need to accept the reality and react to the market through price cuts or discounts. We know it is not sustainable." Hyundai had the opportunity to play in this segment and managed the price of diesel-powered vehicles very competitively,at least temporarily.