Once bitten twice shy: Automakers cautious on new emission norms

As India prepares to switch over to the new emission regulations from April 1, auto makers and dealers are wary of the actual implementation date of the new norms.

The shift to the new norms, which aim to provide emission data of the vehicle in real world conditions rather than data derived from tests in the laboratory, are not as significant as the shift to BS-6 from BS-4 seen three years ago.

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Automakers were caught in a tight spot with an inventory of more than 700,000 that was deemed unsalable after March 31, 2000, since the Supreme Court refused to allow their sale after the deadline.

While the automotive dealers say that they will continue to sell BS-6 phase 1 vehicles even after March 31, 2023, manufacturers are being a lot more cautious to avoid any repeat of 2020.

Speaking to FE, Yogesh Mathur, operating head sales and marketing, Honda Motorcycle and Scooter India said, “What we understand is that from BS-4 to BS-6 we had three days to clear the inventory. This time we do not want to have any such issues. We are more prepared to have a smooth transition”.

During the changeover to BS-6, automakers had to resort to fire sale of their stock to get rid of them in time. Around 700,000 two-wheelers, 15,000 passenger vehicles and around 19,000 trucks and buses were to be retailed in a matter of a few days.

Manish Raj Singhania, president, Federation of Automobile Dealers Association, said, “The rule pertains to manufacturing and not sales or registration of vehicles. From April 1, all vehicles must comply with the new norms. There is hardly any change with regards to actual pollution. This is a minor change compared to the BS4 to BS6 switchover”.

Manufacturers started shifting to production of BS-6 Phase 2 version since January this year to be in a position to exhaust the inventory of the older BS-6 Phase 1 version.

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Tata Motors, for instance, said last month that it had completed the transition to BS-6 Phase 2. Maruti Suzuki, India’s largest carmaker, has also nearly completed its transition.

While passenger vehicles, depending on the fuel-type have witnessed a hike of around ₹10,000, two-wheelers have seen a hike of between ₹1,000-2,000. Prices of commercial vehicles such as trucks and buses have seen a much steeper hike since they primarily run on diesel.

“We introduced our first model in OBD-2 in the Activa in January. We introduced close to ₹1,200 increase. We expect others to make a similar kind of increase. We want OBD 1 to go off the shelf by March 31 whose inventory is very thin as of today,” Mathur added.

Vehicles with OBD-2 will have sensors that will be monitoring various parameters such as the throttle and crankshaft positions, air intake pressure and temperature of the engine and contents of the emission exhaust.

Rahul Bharti, executive director, corporate affairs, Maruti Suzuki, said, “Out of our total 62 applications, we had transitioned 31 applications to BS6 Phase 2 almost a year ahead of the compliance date”.