Norms Of BS6 & Its Impact On Two-wheeler Industry
Published On Aug 13, 2021 11:00 AM By InsuranceDekho
Read this article to understand the norms about BS6 and how it has impacted the two wheeler industry.
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India is one of the world's most polluted cities. According to World Health Organization data from 2016, high air pollution is the fifth leading cause of mortality in India. In reality, 30 cities in India are among the top 100 most polluted cities in the world (in terms of Particulate Matter PM10).
In 2017, the Central Government imposed harsher BS6 emission limits for automobiles to combat India's ever-increasing air pollution. Furthermore, beginning April 1, 2020, all car and two-wheeler manufacturers will be required to sell and register only BS6 compliant vehicles. This article is for you if you're curious about how the BS6 standard has affected the Indian two-wheeler sector.
Meaning of BS6 Emission Standards & Bike Manufacturing Industries
The most sophisticated emission standard for autos in India is BS6, or Bharat Stage 6. It is comparable to Euro VI standards, which are now in use in a number of European nations. Because of our country's ever-increasing air pollution, the Indian government opted to go straight from BS-4 to BS-6 emission standards to reduce vehicle pollution. As a result, the whole automobile industry has been required to phase out all BS-4 vehicles after April 1, 2020, and exclusively offer BS-6 cars and two-wheelers.
For two-wheeler producers in India, transitioning from BS4 to BS6 requirements necessitates considerable modifications in engine technology. Improvements in engine combustion and calibration increased fuel injection and cylinder pressures, and NOx and PM after-treatment solutions are among the adjustments. For the first time in India, the BS-6 regulations require two-wheeler manufacturers to install a gasoline injection system. As a result of this technique, carbon emissions from two-wheeler petrol engines have decreased dramatically. In addition, the BS6 engines appear to be less powerful but more fuel-efficient.
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Pricing And BS6 Norms In The Two Wheeler Industry
The implementation of the BS6 emission rules has compelled automakers to make considerable improvements in engine production technologies. Specifically, they will have to abandon low-cost carburettors in favour of higher-cost fuel injection systems for their products. As a result, BS6 motorcycle and scooter prices have increased by at least 10% to 15% on the open market. This modification has the greatest impact on two-wheelers in the inexpensive sector, while it has the least impact on bikes that already have fuel injection systems.
Two-wheeler manufacturers in India had to raise their company investments in order to satisfy the statutory requirements and make their vehicles BS6-compliant. After the deadline of March 31, 2020, many car and two-wheeler manufacturers experienced considerable losses due to their unsold inventory of BS4 vehicles. As a result, many Indian automotive manufacturers, including two-wheeler and four-wheeler manufacturers, have halted capacity growth plans. In addition, because demand for two-wheelers is likely to decline in the coming months, Indian two-wheeler makers have resisted launching new models in the past year. However, the two-wheeler manufacturers should predict a successful year ahead, based on positive sales data following the relaxation of shutdown restrictions in many parts of the country.
BS6 Standards And The Two-Wheeler Market
The market for two-wheelers declined dramatically after the required introduction of BS6 rules, according to an ICRA report. Aside from the 10% to 15% increase in vehicle on-road prices, there is a slew of additional factors contributing to the drop in demand. These include -
1. The downturn, which has already had an impact on the business
2. The general inclination of consumers to hold off on making purchases until new rules are implemented.
Aside from the issues indicated above, a steep increase in two-wheeler insurance rates and the introduction of new safety regulations for two-wheelers, such as a braking system, have increased the cost of ownership of two-wheelers, resulting in a drop in sales.
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Also Read:- All About IDV And NCB In Two-Wheeler Insurance
Two-wheeler manufacturers are betting on the future and have begun to invest more in the creation of new-generation electric bikes. Many new electric bikes and scooters are expected to be launched in the coming days, with electric bikes and scooters being hailed as the future of India's vehicle sector. Furthermore, stricter pollution standards and higher fuel prices may result in an increase in demand for electric automobiles and two-wheelers in the coming years.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.