Coronavirus could impact BS-IV stock liquidation: Goenka

Nandana James Mumbai | Updated on February 11, 2020

The outbreak of the Coronavirus in Wuhan, which has stoked apprehensions across sectors, may have some impact on M&M since certain parts come in from China, said Pawan Goenka, Managing Director, Mahindra & Mahindra Ltd.

If this supply opens up in the next 10 days, there will be no impact, but if it goes beyond that, it will be a challenge for its around 3,500 BS-IV vehicles, said Goenka. When it comes to the BS-IV ramp down and BS-VI ramp up, Goenka said there doesn’t seem to be any other risk except what the coronavirus can bring about.

If the concerned components for these vehicles do not come in by this month-end, it will be a challenge to manufacture, transport and retail these BS-IV vehicles in just one month, he explained. If it comes to this, it will have to appeal to the Supreme Court for some more time to sell BS-IV vehicles, said Goenka, adding that it won’t be making this call for another two weeks.

Automakers are supposed to sell off their BS-IV stock by the deadline of April 1, 2020, post which the BS-VI emission norms come into play. Only BS-6 vehicles can be sold post this.

Published on February 11, 2020

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