The Shift to BS6-II Emission Norms in April 2023: Impact on Automobile Industry and Consumers.
The Indian automobile industry is set to undergo a significant change with the implementation of the new BS6-II emission norms from April 2023. The key change is the adoption of Real Driving Emissions (RDE), which requires real-time monitoring of a vehicle’s emission levels, and the implementation of an Onboard diagnostics device (OBD-2) for testing in actual-world conditions. The transition will also involve changes in the hardware and software of vehicles, including an upgrade in semiconductors. The estimated cost impact of the transition is expected to be lower than the previous transition to BS6 stage 1, with passenger vehicles seeing a cost increase of INR 10,000 to INR 50,000 depending on the model and engine capacity. Commercial vehicles are expected to increase in price by up to 5.0% , with entry-level 2-wheelers being impacted more due to transition-led costs . In the face of persistent inflation, consumer discretionary spending has been stressed, and the auto...