Norms of BS6 & Its Impact on Two-wheeler Industry
India is one of the most polluted countries in the world. In a survey in 2018, 3 big cities of India were listed as the most polluted cities in the entire world and 30 cities out of 100. According to data released by WHO in 2016, the fifth largest reason for death in India is pollution.Read more
There are millions of bikes and cars running on the Indian roads if we talk about the capital of India Delhi only then the emission of Carbon monoxide is around 58%, emission of hydrocarbons is around 49% and emission of nitrous oxide is around 18%.
To decrease the level of pollution, the central government released more strict Bharat Stage 6 emission norms for the bikes and cars in 2017. Later, they made it compulsory for all cars and two-wheelers to sell vehicles that are BS6 compliant starting from April 1st, 2020.
So, let us tell you how the BS6 norms impacted the Indian two-wheeler industry.
BS6 stands for Bharat stage 6 is an advanced gas emission standard that is equivalent to EURO 6 norms that are applied in many European countries. It has been made mandatory after seeing a constant rise in pollution. Before the pandemic when there was no need for people to wear masks, in 2017-18 there was a time when Delhites had to wear a mask to keep themselves inhaling poisonous gasses.
Hence, the automobile industry was asked to follow the BS6 norms in cars and bikes as the deadline was April 1, 2020.
Change in Two-wheeler Manufacturing Post BS6 Norms Compulsion
Change from BS4 to BS6 requires changes in the two-wheeler engine in India. The two-wheeler manufacturers need to change the calibration and combustion of the engine and need to improve the fuel injection as well as cylinder pressures after the treatment solutions for NOx and PM.
In order to comply with the BS6 norms, the bike manufacturers have to introduce a better fuel injection system for the first time in India. After this, the carbon emission in two-wheeler petrol engines has been decreased although the BS6 engines are less powerful but more fuel efficient.
Affect on On-road Price of Two-wheelers
When the central government made it mandatory for the manufacturers to follow the BS6 norms, they have to make required changes in the engine that produces lesser harmful gases on emission. This made them stop using affordable carburetors and use expensive fuel injection for their two-wheeler engines. This made the on-road price go up a notch by 10-15 percent.
The affordable two-wheelers were affected by this change while bikes that already have a fuel injection system were not affected much. As we have mentioned the carburetor and fuel injection system, let us tell you the difference between them.
Carburetor & Fuel Injection System
When the internal combustion engine was invented, engineers have always looked for a better way that could easily deliver fuel and air to the combustion engine. What controls this delivery of air and fuel is known as the carburetor whereas a fuel injection system works the same way.
So the difference between them is that the fuel injection system get the air and fuel mixture to enter the combustion chamber with the help of electronics and sensors and not through mechanical parts that a carburetor does.
Impact on Two-wheeler Manufacturers
In order to comply with the compulsory requirement of the BS6, the bike manufacturers have to increase their investment as they have to use fuel injection systems in their bikes which are costly than the carburetors. Many manufacturers have to suffer huge losses as the bike and cars with BS4 engines could not be sold before the deadline.
This made these companies pull out their capacity expansion plan as the demand decreased in the coming days due to the rise in the price of the vehicles. They could not launch new products which were made following the BS4 norms.
Let me give you an example of a customer. Rajesh was willing to purchase the bike in March 2020, he did his research online and chose a bike that suited his requirements as well as budget but he was not aware of the BS6 norms are going to apply from April 1, 2020, and the bike he chose used a carborator for fuel injection. He decided to purchase the bike on his birthday which was on April 5, he was excited but when he went to the bike’s showroom, the bike he chose was not there because of the BS6 norms, and other bikes that were there were out of his budget. He had to leave empty-handed, there were many people llike Rajesh who could not purchase a bike because they were out of their budget as the prices of the bikes were increased after the BS6 norms implementation. This made the graph of sale go down and companies had to face huge losses.
Effects in Demand for Two-wheelers
Since there was an increment in the prices of two-wheelers up to 10-15 percent, there was a fall in the sale graph of the two-wheeler manufacturing companies. Since it is a tendency of a buyer to wait when the new norms come into effect for the automobile sector and the slowdown in the industry because of the norms as well.
This made the sharp hike in the two-wheeler insurance premiums, as well as the braking system, also increased the two-wheeler ownership cost that declined the sale. Since it is mandatory for the two-wheeler owner to have a third-party bike insurance policy that is an extra amount they have to pay in order to keep themselves safe from unforeseen emergencies like accident etc.
The entry-level two-wheelers with an engine displacement of 75 to 100cc also witnessed a decrease in the sale.
New Hopes after Pandemic
It can be called as a long shot but due to pandemic people are able to save more money than they ever could. Since people who love bikes and could not purchase the one they wanted, they might as well now. As they would be saving a lot and could use that in purchasing their dream bike. This will increase the sale and help the automobile industry to get out of the losses they have to face during the pandemic.
BS6 norms are made mandatory are for our safety only. Since pollution is one of the biggest problems in our country, it was necessary for the government to bring out norms that can help in reducing pollution. Also, just like the BS6 is for our benefit, two-wheeler insurance plays the same role as it provides financial coverage to the policyholder. Although it is mandatory for the two-wheeler owners to have the third-party liability insurance, the insurance experts suggest the two-wheeler or car owners to purchase a comprehensive insurance plan as it would provide over all coverage in case you meet an accident and sustain an injury. You can purchase the policy online as it would be beneficial for you and calculate the premium rates online so that you can manage your expenses accordingly. Drive safe, drive smart and play your part in keeping the city and country pollution-free.