Impact of Implementation of Bharat Stage VI (BS-VI) on Indian Commercial Vehicle Industry, FY 2019

Impact of Implementation of Bharat Stage VI (BS-VI) on Indian Commercial Vehicle Industry, FY 2019

Implementation of BS-VI Norm to be a Major Disruptor for the Commercial Vehicle Industry, Impacting Largely the OEMs, Stakeholders, Industry Volumes, and Cost of Vehicle and Changing the Entire Ecosystem of CV Industry

RELEASE DATE
27-Aug-2019
REGION
Global
Research Code: PA9C-01-00-00-00
SKU: AU01881-SA-MR_23450
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Description

The aim of this study is to evaluate the impact of the implementation of Bharat Stage (BS)-VI norms in India on the commercial vehicle industry. The main objectives of this study are to provide a strategic review of the BS emission standards and the development of BS-VI engines. This study analyzes the challenges faced by the commercial vehicle industry during and after the implementation of the norms. This study also evaluates the present impact of the BS-VI norms on the commercial vehicle industry in India and the growth opportunities for stakeholders.

BS-VI is an outflow standard that will bring truly necessary changes in the Indian vehicle industry in terms of toxin emanations. With this outflow standard becoming effective, India will be at standard with the US, European nations and other progressive economies around the globe.
India is currently following BS-IV standard that was brought into effect on April 2014. The upcoming BS-VI standard incorporates a wide rundown of innovation adjustments in the engine, the most noteworthy being making on-board diagnostics (OBD) required for all vehicles. BS-VI is in lines with Euro-VI norm already adopted in European countries. In fact, this new emission norm will also address one major drawback in the Euro-VI norm that allows emission of higher particulate matter (PM) in diesel engines.

Leapfrogging from BS-IV to BS-VI will be a challenging task, especially for the OEMs, as it will require significant engine technology changes including improvements in engine combustion and calibration, increased injection, and cylinder pressures. These changes call for heavy investments and co-ordination across the value chain to ensure a smooth transition.

With the implementation of the BS-VI norms, OBD will become mandatory for all vehicles. The OBD unit facilitates the proper working of the sophisticated emission control device at optimum efficiency throughout the life of the vehicle. This will result in a substantial reduction of carbon emission from the vehicles. With BS-VI implementation, the demand for CVs is expected to slow down during the first few years after the roll-out of BS-VI norms, as the BS-VI–compliant vehicles are bound to be costlier than BS-IV vehicles due to the advanced technology used and increased fuel cost. The demand is expected to pick up slowly as all the factors start stabilizing.

Table of Contents

Executive Summary—Key Highlights

Executive Summary—Key Highlights (continued)

Executive Summary—BS-VI Emission Norm: Background

Executive Summary—Advantage of BS-VI over BS-IV

Executive Summary—Emerging Technologies

Research Scope

Research Aims and Objectives

Key Questions This Study Will Answer

Research Methodology

About BS-VI Emission Norm—Background

Need to Leapfrog from BS-IV to BS-VI

Key Challenges from Leapfrogging BS-IV to BS-VI

Executive Summary—Advantage of BS-VI over BS-IV

BS Emission Standards

BS Emission—Testing

BS Emission—OBD Requirements

BS Emission—Durability

BS Emission—Diesel Fuel Specification

Key Challenges to Develop BS-VI—Compliant Vehicles

Key Challenges to Develop BS-VI—Compliant Vehicles (continued)

New Base Engine Development

Emerging Technologies

Emerging Technologies (continued)

Exhaust After-treatment Devices

SCR Technology

SCR Versus EGR Technology

SCR Versus EGR Technology (continued)

Who Participated in Our Survey?

Impact of Implementation of BS-VI on Various CV Industry Stakeholders

Impact of BS-VI on Overall Cost of Vehicles

Impact of BS-VI on Dealer Margins

Impact of BS-VI on Mileage of Vehicles

Impact of BS-VI on Fuel Cost

Impact of BS-VI on Maintenance Cost

Impact of BS-VI on Industry Volumes Before Implementation

Degree of Impact of BS-VI on Industry Volumes Within a Year After Implementation

Degree of Impact of BS-VI on Industry Volumes in 1–2 Years After Implementation

Impact of BS-VI on Value Establishment (i.e., Fluid Economy)

Most BS-VI—Compatible OEMS in CV Industry in India

Possibility of Any Amendments in Vehicle Scrappage Policy due to Implementation BS-VI Norms

Opinions of the CV Industry Expert—Impact on Fleet Owners

Opinions of the CV Industry Expert—Impact on Service Offerings by OEMs

Opinions of the CV Industry Expert—Issues/Challenges Regarding Implementation of BS-VI

Suggestions of the CV Industry Expert—On Smooth Implementation of BS-VI

Total Industry Volume (TIV) Forecast Scenario—Frost & Sullivan’s Perspective

Summary of Findings

Growth Opportunity 1—Development of BSVI Compliant Trucks and Availability of BSVI Fuel

Growth Opportunity 2—Engine Downsizing and Innovative System Development

Growth Opportunity 3—OBD as Value-added Service Offering

Strategic Imperatives for Success and Growth

The Last Word—3 Big Predictions

Legal Disclaimer

Table of Acronyms

Table of Acronyms (continued)

List of Exhibits

The Frost & Sullivan Story

Value Proposition—Future of Your Company & Career

Global Perspective

Industry Convergence

360º Research Perspective

Implementation Excellence

Our Blue Ocean Strategy

The aim of this study is to evaluate the impact of the implementation of Bharat Stage (BS)-VI norms in India on the commercial vehicle industry. The main objectives of this study are to provide a strategic review of the BS emission standards and the development of BS-VI engines. This study analyzes the challenges faced by the commercial vehicle industry during and after the implementation of the norms. This study also evaluates the present impact of the BS-VI norms on the commercial vehicle industry in India and the growth opportunities for stakeholders. BS-VI is an outflow standard that will bring truly necessary changes in the Indian vehicle industry in terms of toxin emanations. With this outflow standard becoming effective, India will be at standard with the US, European nations and other progressive economies around the globe. India is currently following BS-IV standard that was brought into effect on April 2014. The upcoming BS-VI standard incorporates a wide rundown of innovation adjustments in the engine, the most noteworthy being making on-board diagnostics (OBD) required for all vehicles. BS-VI is in lines with Euro-VI norm already adopted in European countries. In fact, this new emission norm will also address one major drawback in the Euro-VI norm that allows emission of higher particulate matter (PM) in diesel engines. Leapfrogging from BS-IV to BS-VI will be a challenging task, especially for the OEMs, as it will require significant engine technology changes including improvements in engine combustion and calibration, increased injection, and cylinder pressures. These changes call for heavy investments and co-ordination across the value chain to ensure a smooth transition. With the implementation of the BS-VI norms, OBD will become mandatory for all vehicles. The OBD unit facilitates the proper working of the sophisticated emission control device at optimum efficiency throughout the life of the vehicle. This will result in a substantial reduction of carbon emission from the vehicles. With BS-VI implementation, the demand for CVs is expected to slow down during the first few years after the roll-out of BS-VI norms, as the BS-VI–compliant vehicles are bound to be costlier than BS-IV vehicles due to the advanced technology used and increased fuel cost. The demand is expected to pick up slowly as all the factors start stabilizing.
More Information
No Index No
Podcast No
Author Ankush Katailiha
Industries Automotive
WIP Number PA9C-01-00-00-00
Is Prebook No
GPS Codes 9800-A6,9883-A6,9889-A6,9694,9AF6-A6