BS VI could see India Auto Inc invest up to Rs 100,000 crore

The leapfrogging of emission norms from BS IV to BS VI by April 2020 could see the Indian automotive industry invest the considerable amount of close to Rs 100,000 crore in technologies and manufacturing.  

Talking about the upcoming shift in the emission norms in the Indian automotive sector, KK Gandhi, executive director, SIAM, said that the sector could be looking at overall investments of close to Rs 100,000 crore, with infusion being done jointly by component suppliers as well as vehicle manufacturers.

The Indian automotive industry had spent around Rs 30,000 crore in making the transition from BS-III to BS-IV. The difference this time around is substantially huge because the norms are drastically different, with immensely low emission allowances in BS-VI and a lot of development work to be done to modify, as well as work upon fresh technologies to suit Indian conditions. For instance, India will need lower Diesel Particulate Filter (DPF) temperatures than a number of foreign countries, because of the tropical climate.

Moreover, the Indian market will witness another paradigm shift in the next couple of years, which would be in the form of new safety regulations coming into place by October 2019. Since many platforms will require complete re-engineering, the investment then is inclusive of safety and emission compliance of the final product, which would then be fit to be sold in the highly evolved Indian automotive market of 2020. Also with BS VI, India’s automakers will be on an even keel with developed markets, thereby opening up the export world like never before.

Also read: SIAM urges government to be tech and fuel neutral, not mandate only EVs