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    Maruti Suzuki writes off BS4 parts worth Rs 125 crore

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    Nikhil Puthran

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    Maruti Suzuki writes off BS4 parts worth Rs 125 crore

    - Writes off obsolete parts of BS4 parts vehicles worth Rs 125 crore

    - The company has already sold 8,00,000 BS6 vehicles 

    The country’s largest car manufacturer, Maruti Suzuki was the first manufacturer to start the transition from BS4 to BS6 norms ahead of the 1 April, 2020 deadline. The company had revealed that it had no unsold stock of BS4 vehicles by the end of the financial year 2020. However, media reports reveal that the company has absorbed a hit of Rs 125 crore over obsolete parts of BS4 vehicles lying with itself and the vendors.

    The media report reveals that several other car manufacturers will also disclose their write-offs in the coming days. However, unlike Maruti Suzuki, losses for other manufacturers will also include fully built BS4 vehicles. Interestingly, Maruti Suzuki has already sold 8,00,000 units of the BS6 vehicles since the sale of the first unit in April 2019, while other car manufacturers like Mahindra, Tata Motors and Hyundai produced BS4 models closer to the deadline. 

    Following a joint petition filed by the manufacturers and dealers citing low sales due to Coronavirus (COVID-19) pandemic, the Supreme Court allowed 10 per cent sale of the BS4 inventory after the 1 April deadline post the lockdown period. The company has discontinued the diesel engine option across its product line up. The upcoming S-Cross petrol is likely to be launched soon and will be the latest addition to the BS6 lineup.

    Source: M

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