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Current Affairs

BS VI norms take toll on automobile sector

Date: 14 March 2020 Tags: Reports & Indices

Issue

The total wholesale automobile sales in the country declined by a little over 19% during the last month as consumer sentiment remained subdued amid economic slowdown and new BS VI norms.

 

Details

  • Vehicle sales across categories stood at over 16.46 lakh units in February 2020 as against sale of over 20.34 lakh units in February 2019.

  • Supply chain disruptions from China is also a concern, which may impact the production plans for companies going forward.

  • As per data shared by Federation of Automobile Dealers Associations (FADA), the retail sales of vehicles in the country, as measured by vehicle registration numbers, grew 2.60% to over 17.11 lakh units in February 2020.

  • While sales of passenger vehicles declined by 1.17% to over 2.26 lakh units, that of two-wheelers and commercial vehicles were up 1.52% to 12.85 lakh units and 13% to 92,805 units, respectively.

BS VI norms

  • Bharat stage (BS) emission standards are emission standards instituted by Central Government to regulate the output of air pollutants from internal combustion engine equipment, including motor vehicles.

  • The standards and the timeline for implementation are set by Central Pollution Control Board (CPCB) under Ministry of Environment & Forests and climate change.

  • At present, all new vehicles being registered are BS- IV-emission compliant. By switching to BS-VI, India will join league of US, Japan and European Union, which follow Euro Stage VI emission norms.

  • BS-IV fuels contain 50 parts per million (ppm) sulphur, while BS-V and BS-VI grade fuel will have 10 ppm sulphur. It will also bring down NOx emissions from diesel cars by 68% and 25% from petrol engine cars.