scorecardresearchCar prices to rise as automakers prepare to meet stricter emission standards: Report

Car prices to rise as automakers prepare to meet stricter emission standards: Report

Updated: 10 Oct 2022, 10:56 AM IST
TL;DR.
The Indian automobile industry is currently working to make their products meet the second phase of Bharat Stage VI. Industry players expect an increase in overall production costs, which could be passed on to buyers starting next year.
The Indian automobile industry is currently working to make their products meet the second phase of Bharat Stage VI.

The Indian automobile industry is currently working to make their products meet the second phase of Bharat Stage VI.

Passenger and commercial vehicle prices have been rising since February of this year due to a rise in commodity prices. Original equipment manufacturers (OEMs) in the domestic market have already hiked the prices of their vehicles at least once in 2022.

The rise in Interest rates has also increased the cost of vehicle ownership, adding to challenges, the prices may rise even more as automobile companies invest in upgrading vehicles to meet stricter emission norms that kick in from April next year, PTI reported.

The Indian automobile industry is currently working to make their products meet the second phase of Bharat Stage VI, equivalent to Euro-VI emission norms, in real-time driving conditions, the report said.

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 overall production costs, which could be passed on to buyers starting next year.

Vehicles will need to have an onboard self-diagnostic device to monitor 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, the report noted.

In a scenario wherein the emissions exceed the parameters, the device will indicate through warning lights that the vehicle is submitted for 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, the temperature of the engine and the content of the emissions from the exhaust (particulate matter, nitrogen oxide, CO2, sulphur), etc.

In 2016, the government asked the automobile industry to upgrade to BS-VI norms by April 2020. The short deadline was unprecedented anywhere in the world as it was a leap from BS IV to BS VI.

The deteriorating air pollution situation in various cities, including Delhi-NCR, was one of the prominent reasons to usher in stricter vehicular emission norms in the country.

Sulphur content is the major difference between BS IV and BS VI norms. India adopted Euro-III equivalent (or Bharat Stage-III) fuel with a sulphur content of 350 ppm in 2010 and then took seven years to move to BS-IV, which had a sulphur content of 50 ppm. BSVI petrol and diesel contain just 10 parts per million (PPM) of sulphur, according to the report. 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

Article
Commodity prices and stock market
First Published: 10 Oct 2022, 10:56 AM IST