New emission norms and its effects on the car industry

  • Mar 3, 2014
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The Indian auto industry is shifting to more stringent emission norms soon. Here's what it means and how it affects you

Emission from Exhaust

You might soon not have to wait for the smoke screen to clear to see the traffic ahead. We might be exaggerating a bit about the smoke screen, but you get the drift. Pollution levels in major cities across India are at unhealthy levels so finally an expert panel has suggested a move to Bharat Stage 5 (BS5) emission norms by 2021, and an interim BS4+ in 2016 for a smooth transition to cleaner emissions. We might just be able to breathe cleaner air after two years.

At present, BS4 emission norms are applicable only in 13 major cities around the country, while the rest of the country adheres to BS3 norms. While these 13 cities shifted to BS4 norms in April 2010, the rest of the country only moved on to BS3 in October 2010. Two different norms for one nation creates a logistical nightmare for carmakers, so moving to BS4+ norms in 2016 is suggested to be nationwide.

With every update in emission norms, vehicles have to become more efficient than before, and cut down on pollutants. A shift to BS5 will see a major decline in sulphur levels among other pollutants in fuels. Under BS3 norms, stipulated sulphur level is at 350PPM. Transitioning to BS4 for the rest of the nation, then BS4+ and eventually BS5 in 2021, will reduce sulphur from its present levels to 50PPM, and then 10PPM respectively.

Car and component manufacturers aren’t too worried about stricter norms as the technology to upgrade our cars to future emission norms is already in use abroad. Since most of the developed world is ahead of India on this front, all it will take is the adoption of newer cleaner technology to Indian cars. Infact, car makers would prefer the adoption of latest emission norms at the earliest, and implement uniform standards throughout the country instead of the present split between major cities and the rest of the country, as it is easier to produce cars adhering to the same norms at the factory than two.

You’ve noticed the way policy has guided our automobile industry towards products very specific to India like compact sedans and SUVs, sub- 1,200cc petrol and 1,500cc diesel engines. New emission norms are likely to steer the industry into a similar path. Industry sources tell us that with the new norms in place, manufacturers will have to downsize engines. Downsizing without compromise in power will require turbocharging. Sources in the industry tell us that these norms could finally lead to a demand for performance over fuel efficiency as fuel efficiency will be a ‘given’. As the gap between petrol and diesel is reducing, the demand for petrol cars too will increase in the coming years. As for diesel cars, among modifications, the wastegate turbos will have to make way for variable geometry turbos and all cars will start using diesel particulate filters (DPF).

When Tata Motors launched the Revotron turbo-petrol engine in January, it wasn’t just the need of a petrol engine in their line-up but the need of a turbo-petrol mill. Volkswagen has the 1.2-litre TSI in the Polo and Vento, and Ford has the award-winning EcoBoost in the EcoSport. These turbo-petrol engines will play a huge role in the future for them, and it wouldn’t be a surprise if other manufacturers follow suit.

What does all this mean to you? Besides cleaner air, it is almost certain that car manufacturers will increase prices once the new norms are applied. While buying costs will go up, owning costs should reduce as engines will be more efficient and cars will get lighter.  

The toughest challenge is for oil companies. Upgrading their fuel quality to low sulphur levels in the BS5 norms will cost an estimated Rs 75,000 crore. They will not have much of a choice though as India is attracting much more global interest than before, and cannot be seen as a country using below par fuels than the rest of the world.

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