BS-VI Transition Experience
With the new BS-VI norm introduced in 2020, the Indian automotive industry had to go through a massive transformation in order to meet the deadline. In addition, the industry, which was in the midst of slowdown, was further affected due to the pandemic-induced lockdown. That said, the past few months have seen healthy recovery in the industry, particularly in the two-wheeler segment. This is driven by a combination of factors, but this trend is expected to continue. From the company’s perspective, the upward trend in sales is a healthy sign for us as well. India has several policies that are now focused towards cleaner emissions, thereby creating opportunities for us.
We announced a partnership with Padmini VNA Mechatronics, setting up a 50:50 joint venture company in 2020 for select powertrain technology solutions in order to meet the BS-VI emission standard for the domestic market. We have a product range of the new joint entity under ‘PV Clean Mobility Technologies’ and will be focusing on actuators and fuel delivery modules for passenger cars, commercial vehicles as well as two-wheeler markets that can support the upcoming demand. Vitesco Technologies continues to support all key automotive customers in India for their transition to BS-VI emission standards. We are continuing to make investments in enhancing combustion engines and supporting the drive towards cleaner air in India also through electrification.
Challenges and Takeaways
India leapfrogged from BS-IV to BS-VI, and did that in a record time. BS-VI is a huge step because we are now in line with the global emission trend after having wiped out the lag of 3-4 years. BS-VI compliance requirements have provided a window of opportunity for OEMs to enhance their portfolio as an innovator in battery technology along with valve trains for friction reduction, flexibility and advanced combustion technologies. However, this new standard has challenged suppliers to align the supply chain in ways that minimally affect vehicle costs.
As Vitesco Technologies has years of expertise backed with path-breaking research and technology, there weren’t many roadblocks for us. We already have a range of products that are designed to meet BS-VI requirements. The Indian automotive industry and, most importantly, the passenger vehicle sector, is currently preparing to reduce the cost impact of this compliance and to create a balanced powertrain portfolio combining petrol, diesel, and, to a lesser extent, electrified propulsion systems.
Opportunities
India is currently one of the fastest growing markets in the world. There is great demand and a focused push towards cleaner mobility. The implementation of BS-VI norms, along with other norms, provides a host of opportunities for us. We have appropriate technologies in all these domains and we are also doing considerable research and development in this space for newer and better technologies. Our range of products is perfectly aligned for the requirements of the country. For example, we are a partner of choice for the NOx sensor and particulate differential filter sensor for the BS-VI applications. With stricter emission legislations in place in several markets, including India, we have the right expertise and experience to meet the needs and requirements. The technologies that India needs to meet these BS-VI norms are already available and Vitesco Technologies has them in series production, delivering in markets like Europe, US and China.
Current and Upcoming Financial Year
Vitesco Technologies, as a company, is a pioneer in the field of electrification, and is ideally positioned to benefit from the tilt towards e-mobility and the growth prospects associated with this transformation. We embarked on the road towards electrification more than 10 years ago. Today we are benefiting from the wide range of electrification technologies that we offer. Coming to India, we are continuously working with our customers to meet their requirements. The government’s initiatives to promote BS-VI and electrification are a great move towards clean mobility and Vitesco Technologies is supporting this transformation with an array of offerings. Further, the recent announcement of a voluntary scrappage policy in the Union Budget 2021 was a much-needed move in the right direction. We look forward to further details on this policy to understand how this can encourage the adoption of electric vehicles, gradual reduction of air pollution in coming years, and newer Bharat Stage norms in the future. We look forward to the proper implementation of this policy across a larger platform as soon as possible and that will help us to enhance demand in the market. To sum it up, Vitesco Technologies is shaping the market by embracing a strong, proactive role with the expertise gathered over years.