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Car prices may rise as manufacturers gear up to comply with stricter emission norms

Car prices may rise as manufacturers gear up to comply with stricter emission norms

Car prices may rise as manufacturers gear up to comply with stricter emission norms
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By PTI Oct 9, 2022 2:57:21 PM IST (Published)

Four-wheeler passenger and commercial vehicles will need more sophisticated equipment to be added to meet the next level of emission standards. Industry players expect an increase in the overall production cost, which could be passed on to buyers starting next year.

Passenger and commercial vehicle prices are expected to rise as automobile companies invest in upgrading vehicles to meet stricter emission norms that kick in from April next year. The Indian automobile industry is currently working to make products meet the second phase of Bharat Stage VI, equivalent to Euro-VI emission norms, in real time driving conditions.

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Four-wheeler passenger and commercial vehicles will need more sophisticated equipment to be added to meet the next level of emission standards. Industry players expect an increase in the overall production cost, which could be passed on to buyers starting next year.
Vehicles will need to have an on-board self-diagnostic device to monitor the real time driving emission levels. The device will constantly monitor key parts for meeting emission standards such as the catalytic converter and oxygen sensors, to keep a close watch on emissions. In a scenario wherein the emissions exceed the parameters, the device will indicate through warning lights that the vehicle be submitted for a service.
Additionally, in order to control the level of fuel burnt, the vehicles will also carry programmed fuel injectors, which would control the timing and amount of fuel injected into the petrol engine. Even the semiconductors used by the vehicle will have to be upgraded to monitor throttle, crankshaft positions, air intake pressure, temperature of the engine and the contents of the emissions from the exhaust (particulate matter, nitrogen oxide, CO2, Sulphur), etc.
"The new norms are likely to lead to a marginal increase in the overall vehicle price, with the changes required relatively lower vis--vis the previous transition (BS IV to BS VI)," ICRA Vice President & Sector Head, (Corporate Ratings) Rohan Kanwar Gupta noted.
Mahindra & Mahindra President (Automotive Sector) Veejay Nakra said all company vehicles (passenger and commercial vehicles) will be compliant as per the regulatory defined timelines.
Tata Motors Executive Director Girish Wagh said the company is in the last lap of transition and a good amount of the automaker's engineering capability is currently engaged in this development work. Commenting specifically on the passenger vehicle segment, Tata Motors Managing Director (Passenger Vehicles) Shailesh Chandra said the company is ready to transition to the next phase in a smooth manner.
When asked if the prices will go up due to the upgrade, he said, "I cannot comment immediately but it will be not as drastic as what we had seen in transition from BS IV to BS VI."
Maruti Suzuki India Executive Officer Corporate Affairs Rahul Bharti said the automajor was among the first few car manufacturers to transition most of its models from BS IV to BSVI emission norms. "We are on course for BS-VI Phase 2 transition also. Infact, out of the total 61 applications, we have already transitioned 31 applications to BS-VI Phase 2 almost a year ahead of the compliance date. The remaining 30 applications will also be completed within time," he noted.
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