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Home » News » Business » Two-wheelers may cost 20 per cent more
Two-wheelers may cost 20 per cent more

Two-wheelers may cost 20 per cent more

The Indian 2-wheeler industry is the largest in the world.

MUMBAI: All new Indian two-wheelers will cost 10-20 per cent more as manufacturers implement the tighter emission norms laid down by the industry from April 2016.

The Indian 2-wheeler industry which is the largest in the world, is transitioning to the tighter BS VI emissions norms by 2020 in an attempt to be on par with global emission standards. This includes large scale adoption of alternate technologies leading to a cost differential to the tune of 10 to 20  per cent of the cost of the vehicle, according to rating agency ICRA.

The migration to BS VI norms, bypassing BS V norms, according to a notification from the ministry of road transport and highways (MoRTH), requires all automobiles including two-wheelers to do this  in 2020.

They mandate the use of electronic fuel injection (EFI) systems in two-wheelers, to replace carburetors that would impact the cost structures for manufacturers. The costs would come down as parts of the EFI system gets more localised from the present 10-20 per cent said  Mr Subrata Ray, senior group vice president, ICRA Ltd.

The ability of ancillaries to localise the entire EFI system by 2020 remains challenging for multiple reasons. The availability of BS VI compliant fuel, adapting the available technologies in line with operating conditions and requirements of the Indian market, cost differential on migration from carburetor to EFI system and vehicle modification cost are among the few he mentioned.

“The major change in a 2W on migration to BS VI norms would be the inclusion of carbon canisters to control evaporative emissions. The cost impact for these and other changes  is not expected to be significant— in the range of 2-3 per cent of the price of the vehicle”, said Mr Ray.


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