The Influence of BS6 Norms on the Two-Wheeler Industry

Posted on: Apr 21, 2022 | | Written by:

The Influence of BS6 Norms on the Two-Wheeler Industry

India is regarded to possess one of the fastest developing economies, where two-wheelers are the most popular vehicles, both in towns, and cities. These are quite handy and portable and despite heavy traffic, you can manage them well. Not only for men, but two-wheelers are also popular amongst women too. It is developing to become the chief automobile lifeline of the country. A study has revealed that nearly two out of every three Indian households possess a two-wheeler, and almost eight out of every ten vehicles are two-wheelers plying on Indian roads. Such encouraging sales have boosted the two-wheeler insurance sector too.

In 2017, the Indian government announced and implemented strict guideline norms regarding BS6 emission standards. Moreover, it also announced that from April 1, 2020, onwards, the respective authorities will exclusively sell and register only BS6 compliant two-wheelers.

BS6 emission standard:

BS6 or Bharat Stage 6 is currently the most advanced emission standard in the Indian automobile sector. It is close to the Euro VI norms, which are highly regarded in several European countries. These norms and standards were introduced for better regulation of the emission of numerous air pollutants. The standards are set by the Central Pollution Board, under the Ministry of Environment and Climate Change. To lower the rising air pollution levels, the government of India implemented the concerned BS6 standards right after BS4. This has gravely impacted the automobile industry, resulting in the gradual phasing out of all the BS4 vehicles since April 1, 2020.

List of Benefits of BS6:

Some of the most prominent advantages of implementing and adapting BS6 norms are:

1. BS6 compliant engines reduce nearly 25% of nitrogen oxide in the petrol vehicles and a significant 70% in the diesel vehicles

2. Several technological advancements have been implemented with in-depth experiments and tests done exclusively under Indian driving conditions

3. This engine possesses an advanced exhaust system, ensuring enhanced durability

4. BS6 norms enforce uncompromising limits on the emission levels of Non-Methane Hydrocarbon.

5. On-Board Diagnostics has become a compulsion now, and close and regular monitoring of the pollution levels is very essential under the circumstances

6. Real Driving Emission helps in checking the emission levels under real-world situations and is not limited to just testing conditions.

Impact of BS6 on the two-wheeler industry:

In order to meet the government standards in making their vehicles BS6 compliant, the two-wheeler companies are compelled to raise their investment levels. Several manufacturers have suffered heavy and serious losses because of the implementation of this mandate, as all BS4 vehicles are impossible to sell within the 31st March 2020 deadline.

Because of this, various Indian automobile makers were bound to pull out their capacity expansion strategies. Moreover, most of them have decided to play safe and have resorted not to launching any new two-wheeler in the Indian market. However, the post-lockdown boost in the two-wheeler sales has definitely encouraged the market.

An ICRA analysis reveals that the implementation of the BS6 regulations has harmed the expected sales figures of two-wheelers. Such declined demand is also dependent on a 10-15% hike in the on-road prices of the two-wheelers. Apart from that, there has been a sharp rise in two-wheeler insurance premium costs too, creating heavier loads on pockets.

Transitioning from BS4 to BS6:

It requires several modifications to the vehicle’s engine. The concerned manufacturers have made significant improvements in sectors like fuel injection, engine combustion, cylinder pressures, etc. For the first time, the Indian carmakers have to install a gasoline injection system. The BS6 compliant engines are comparatively more fuel-efficient and less powerful and have significantly reduced carbon emissions from the engines, both diesel and petrol.

Conclusion

The implementation of BS6 norms ensures a sustainable approach, maintaining the ecological balance with reduced carbon emissions. The government has implemented the norms in the best interest of the citizens. It is for our safety and the safety of our environment that we must abide by these regulations and improvisations, keeping up with the change in the two-wheeler sector as well as thetwo-wheeler insurance sector too.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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