The Big Shift

The BS VI emission norms are good for the environment, but the rising costs that will come along may dampen the industry mood

- JASODHARA BANERJEE

From April 1, when the Bharat Stage (BS) VI emission norms come into effect, a lot more will change apart from the composition of exhaust fumes of new cars. Consumers of passenger vehicles will have fewer models to choose from while buying a car and the cars will cost more, as will their BS VI compliant fuel. The effect that the combination of these factors will have on the Indian auto industry—already struggling with the worst slowdown in sales for over a year—is yet to be seen. While some predict the continuation of tepid consumer response, others pin their hopes on the launch of new models to pique consumer interest.

On February 19, 2016, the ministry of road transport and highways had issued a draft notification of BS VI emission standards for all major on-road vehicle categories in the country, including light- and heavyduty vehicles, as well as two- and three-wheelers. The government had confirmed that the country would leapfrog BS V level emission standards and move directly to the more stringent and robust BS VI (see: What’s new with BS VI). There were two reasons for this switch: One, the rising level of vehicular pollution in India and the effect it had on public health (see: The burden of vehicular pollution); two, reducing the pressure and investment costs of oil refineries to

first implement BS V and then BS VI.

The time frame, however, within which this switch was to be made was one of the toughest in the world. The European Union had implemented Euro IV emission standards in 2006, Euro V in 2011, and Euro VI in 2015. In India, nationwide implementation of BS IV standards took place from 2017, just three years before the country was mandated to switch to BS VI standards from this April.