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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
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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.
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