Out of gas, India's auto sector reaches out for digital fuel

India’s switch to Bharat Stage VI vehicles came when the $55 billion auto industry was already reeling under multiple lockdowns. With $960 million worth of inventory unsellable and demand prediction gone for a toss, automakers are now figuring out ways to cater to a new hygiene-conscious post-Covid clientele

The cut-off date for stopping the sale of BS IV compliant vehicles—1 April—came smack in the middle of the lockdown

It created an inventory crisis across the country, with hundreds of thousands of vehicles just gathering dust in showrooms

Manufacturers are inching towards digital, offering financial options and completing sales entirely online

Dealers, not to be left behind, are turning to classifieds portals to remain relevant

When the Covid-19 pandemic first struck India in early March, auto manufacturers and dealers were largely unprepared for what followed. Hundreds of thousands of cars and two-wheelers gathered dust as manufacturing plants and showrooms were shuttered, even as potential buyers were locked down at home.

The timing could scarcely have been worse. In the midst of the lockdown, even with the industry in stasis, the country’s emission norms lurched forward—from Bharat Stage (BS) IV-compliant vehicles to BS VI BS VI Business Standard What are BS-VI norms?

AUTHOR

Kunal Talgeri

Kunal is a Bangalore-based business journalist who has dabbled in editing and reporting since 2001. He has covered the technology industry for the Indian editions of Fortune and Forbes, as well as The Economic Times. A commerce graduate, Kunal also studied at the Asian College of Journalism, Chennai.

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