The Indian automobile industry appears to be caught in a cleft stick over emission guidelines as the deadline draws near amid the havoc wreaked by the Novel Coronavirus disease (Covid-2019).

Original equipment manufacturers (OEMs) and dealers are required to liquidate their Bharat Stage (BS) IV inventory by March 31 and shift to the BS VI regime from April 1. However, with footfalls drying up due to the pandemic, they are looking at huge unsold inventory.

CRISIL Research’s interaction with dealers across India indicates the situation is more worrying for two-wheelers than for passenger vehicles (PV), light commercial vehicles (LCVs), and medium and heavy commercial vehicles (MHCVs).