re: BS6 / BSVI emission norms coming in April 2020! EDIT: BS6 Phase II coming in April 2023 The BS-VI emission norms, which are scheduled to come into effect by 2020, will involve costs estimated to be around Rs 70,000 crores!
Hence, even if the GST rollout is effected by April 2017, made-in-India cars which are scheduled to become more safer, more cleaner, more premium and more fuel-efficient, will end up being more costly.
This will adversely affect the sales of future diesel cars, as costs associated with production will rise steeply, hence final pricing, which is expected to rise by about 20% of today's prices, could be deemed too expensive by the common Indian car buyer.
As a result, the government's FAME initiative could be a real push for more car manufacturers to offer cheaper hybrid/electric options, while car manufacturers will find it easier to cater to exports, once India-made cars come closer to meeting the emission norms in different parts of the world.
Either way, post-2020, the Indian auto market will have shifted to a completely different paradigm than what we are seeing today - all these major policy changes will have a significant say in the way vehicles are made, sold and bought in the Indian market. Quote:
Vehicle recall isn't the only area that is getting a look-in. Standards for virtually every aspect of the industry — from safety (crash tests) to fuel emission norms (BS-VI), tax laws (GST) to fuel efficiency standards (CAFE), hybrids & e-vehicles (FAME) to end-of-life scrappage policy — are being reset or newly framed.
Call it the coming of age. Or, simply an inflection point for India's Rs 4.5 lakh crore automobile industry. Two decades back, it was a fledgling industry, selling just 4.4 lakh cars (often dated models), with around five players jostling for space. Today, it is among the world's fastest growing markets with annual sales nudging 3 million units and virtually every global carmaker vying for Indian buyers. By 2020, India is expected to touch 5 million units to become the fourth largest car market.
As worsening pollution made headlines and pressure from the judiciary and environmentalists built up, the NDA government took an unprecedented step to bring in BS-VI norms by 2020, bypassing the fifth stage and advancing the earlier deadline of 2022. This will bring India's vehicular emission standards closer to those in Japan, the EU and the US.
Over 80,000 electric and hybrid vehicles have been sold till now. The uptake of Maruti's mild hybrids cars like Ciaz and Ertiga has been encouraging. Spurred by incentives, the segment is suddenly seeing a lot of action. MNCs like Hyundai, Nissan, Toyota and the homegrown M&M are readying over a dozen new models to launch in the next three years.
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Shekar Viswanathan, Vice-Chairman, Toyota Kirloskar Motor: Quote:
"We are at the cusp of a significant change. The industry has really grown in the last two decades. Maturity of the regulatory environment is critical. If we have to compete in the world economy, we have to adopt global standards."
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Vishnu Mathur, Director-General, SIAM: Quote:
"We were stuck in a time capsule. With so many regulatory changes, we are now trying to make up for lost time."
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CV Raman, Executive Director, Maruti Suzuki: Quote:
"It hasn't happened anywhere in the world. It is not so much about technology. That is available. It's the time and the costs involved to test and roll out all our models that make it so challenging."
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Timothy Leverton, President and Head of Advanced Product Engineering, Tata Motors: Quote:
"It is not so much the nature of the regulation as much as the timing and proximity of so many changes that makes it more challenging."
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Jnaneswar Sen, senior VP (sales & marketing), Honda Cars India Ltd: Quote:
"This is an industry with huge investments and lead time. What we need is a clear, longterm roadmap, much beyond 2020."
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Rakesh Srivastava, Senior Vice-President, Hyundai Motor India Ltd: Quote:
"By 2020, we will see a new dawn, a new order for India's auto industry."
| ET
Last edited by RavenAvi : 11th September 2016 at 13:06.
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