All cars must comply with BS-VI norms from 2020
The Supreme Court has cracked the whip on automotive manufacturers in the country. All cars made from April 1, 2020 must conform to BS-VI standards. With barely two years for the rule to kick in, automotive manufacturers have a short time to work on making the vehicles BS-VI friendly.
Vinodkumar Ramachandran, partner and head, Industrial Manufacturing and Auto, KPMG in India said, “The Supreme Court has taken a strict view and like Euro 4 norms are asking OEMs to adhere to March 31st, 2019 deadline. OEMs have 18 months to prepare for Euro 6 and most have clear plans to meet the target. Depending on the segment, the cost increase could vary from 5-10 per cent to switch to Euro 6. If the oil prices remain high, it could impact vehicle volumes next year and combined with the additional cost to switch to Euro 6 norms, there will be significant margin pressure over next two years and OEMs may have to start cost management right away.”
At a time when electrification of mobility is growing at a rapid pace globally, the rule for all automakers in the country to comply with BS VI from 2020 indicates that the government is serious on its march towards curbing pollution, which will ultimately lead to electrification of vehicles in the country.