Prices for passenger and commercial vehicles are predicted to rise because automakers intend to invest in updating the models to comply with higher emission standards that will go into effect in April 2019. The Indian vehicle sector is modifying its products to ensure that they comply with the second phase of Bharat Stage VI (BS VI) requirements, which are similar to Euro-VI emission norms, according to a PTI article.

Sources in the automobile sector anticipate a spike in production costs to fulfill these new criteria, which might push up the cost of four-wheeler passenger and commercial cars. These vehicles will require more advanced equipment, such as an onboard self-diagnostic system to track the driving pollution levels in real time. This apparatus will monitor the oxygen sensors and catalytic converter to maintain regular emissions.

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In any scenario, the system will signal through warning lights that the vehicle has to be taken in for service if the emissions exceed the permitted limits. The vehicles will also have programmable fuel injectors, which would control the timing and amount of fuel injected into the gasoline engine, in order to control the amount of fuel burned.

The vehicles' internal semiconductors will also be modified to monitor the throttle, crankshaft positions, air intake pressure, engine temperature, and the composition of the exhaust emissions (particulate matter, nitrogen oxide, CO2, Sulphur). Rohan Kanwar Gupta, Vice President & Sector Head, Corporate Ratings, ICRA, stated in the report,  “The new norms are likely to lead to a marginal increase in the overall vehicle price, with the changes required relatively lower vis-à-vis the previous transition (BS IV to BS VI)."

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Gupta noted that any further increase in the price of the car could somewhat moderate demand because OEMs have been obliged to raise prices to combat inflation during the last 15 to 18 months.