The Shift to BS6-II Emission Norms in April 2023: Impact on Automobile Industry and Consumers.

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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 sector has seen significant cost increases since 2020. However, consumers are becoming increasingly aware of the benefits of using vehicles that conform to the latest emission norms, such as improved fuel efficiency and reduced emissions. 

Auto OEMs have been preparing to transition to the BS6-II norms, with most major automakers announcing their readiness to meet the new norms and changing their product portfolios to ensure compliance. Some models will be discontinued from April 2023, including the Honda Amaze diesel, Tata Altroz diesel, Mahindra Marazzo, Hyundai i20 diesel, and Maruti Suzuki Alto 800, which have a smaller engine capacity of 1.5 liters. 


While there might be some short-term impact on demand due to the price increase, the transition to BS6-II is a necessary step towards a cleaner environment and better fuel efficiency. Auto OEMs and customers will need to work together to ensure a smooth transition, with a focus on reducing the environmental impact of the automobile industry. 

Location: Pune, Maharashtra, India

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