Automakers may have to seek extension of BS-IV deadline if China shutdown continues

MUMBAI: A relaxation in the deadline to register BS-IV vehicles may be sought from the apex court if critical components from China do not arrive in time amidst the novel coronavirus outbreak, said a top Mahindra and Mahindra (M&M) official.

Numerous parts that go onto vehicles made in India come from foreign lands, including China. A disruption to the Chinese manufacturing industry has got several automakers worried since even if most of the parts are available, lack of a few critical components can throw the entire production line into jeopardy.

Companies which were still manufacturing BS-IV emission norms compliant vehicles have found themselves in a fix since these vehicles cannot be registered in India post 31 March when the BS-VI norms become effective and most parts for these vehicles have already been sourced.

“If we are not able to get these components towards the end of February, then it would be too tight for us to make, transport and retail the vehicles,” said Pawan Goenka, the managing director at M&M, “and we would have to appeal the honourable Supreme Court that this is a forced measure which we had not control over and we should be given a little extra time to sell the vehicles.”

He said that the call on whether to make such an appeal would not be made for at least two weeks yet.

“We have approximately 6-7 weeks by which we have to manufacture all BS-IV vehicles and sell (them). I am not so concerned about BS-VI delay because that just means a delay, we can make those vehicles sometime later,” Goenka said.

Components for about 3,000 BS-IV vehicles have already been sourced by M&M and the production of these vehicles has been stuck because of the unavailability of engine control units from China.