BorgWarner a product leader in highly engineered components and systems for powertrains around the world, is well set to step up its delivery of fuel-efficient technologies that help improve fuel economy, optimize cooling performance and reduce emissions in the Indian market, thanks to the proposed implementation of BS VI emission norms in 2020.
BorgWarner has a versatile product portfolio including state-of-the-art exhaust gas recirculation (EGR) systems such as valves and coolers as well as hybrid tube EGR coolers featuring the company’s latest EGR valves for commercial vehicles, advanced turbocharging technologies, engine timing systems, a variable cam timing (VCT) technology, diesel cold-start technology and thermal management solutions.
Talking exclusively to MOTORINDIA on BorgWarner’s contribution towards a cleaner India, Mr. Sudhir Kumar Chawla, Managing Director, BorgWarner Emissions Systems India Pvt. Ltd., says: “This is the first time we are talking seriously on advancing the BS IV norms. The Indian Government and SIAM are in sync over the proposal to bring in BS VI emission norms by 2020. BorgWarner is ready globally and we have started making our manufacturing strategy for the Indian market as well. While we are happy to be able to offer a complete module solution, BorgWarner is also ready in India with Euro V, VI technologies. We had inaugurated our validation facility last year and with that we have our total local solution available, backed by our manufacturing facility and global expertise. Most of our OEM customers have started talking to us for BS VI. We were a dominating player in diesel and now we have a module for gasoline also.”
Localization drive
BorgWarner has been investing in India over the last five years, in not just product offering but also in localization. “The engineering is ready. It is easy for us to provide the technology needed in the market thanks to our localization strategy. This is a good opportunity for us to partner and extend our relationship with the OE manufacturers here,” says Mr. Jean-François Savajols, Vice President of Sales, BorgWarner Emissions Systems.
“We are focusing on cost reduction, supply chain efficiency, vertical integration and localization, as a result of which our local manufacturing lines for the motorized valves for BS VI are already operational. Today we are in a position to manufacture the products our customers would use in India in 2020. The import content for these products would be higher initially but on our existing line of products we have reached up to 85 per cent localization,” states Mr. Chawla.
Being cost-efficient
With BS IV norms getting mandated in India, the company is in talks with a few OEMs in the country for its locally-developed BS V and VI modules which are cost effective. Explaining about the EGR & SCR technologies, Mr. Savajols says: “When we move to Euro VI it is difficult to go without the EGR technology on commercial diesel applications. Being a global leader in EGR, our objective at the moment is to optimize the EGR system to offer the best value to our customers rather than looking at another alternative because today the market does not have one. There is clearly an objective of minimizing the cost as much as we could. We are trying to simplify and adopt the product design according to the market requirements and make it cost-effective. Up until Euro V we had some alternatives between the two technologies, but with Euro VI we will have both working together. This is an ongoing exercise in our technical centres. Today 80 to 90 per cent of the market with Euro VI emission regulation uses an EGR solution.”
In India, since cost still remains the primary driving factor, it is the decision of the OEMs to decide as to when this technology could be introduced, and of course, with the commitment of the Government. “With all the climate meetings happening, it’s time to take tough decisions. There are a lot of positive signals from the OEMs and the Government in India. We need to aggressively target emissions and ensure the norms are implemented all at a time”, adds Mr. Chawla.
Over the last couple of years, despite the Indian market being quite sluggish, BorgWarner has performed satisfactorily well. While its sales figures have gone up thanks to new vehicle launches, growth from existing products is yet to catch up. With exports through OEMs showing sustained increase, the company hopes for a positive FY17 overall.
BorgWarner has been committed to the Indian market for many years as reflected from the significant investments it has made in the region. The company enjoys market leadership with its EGR technology as it plans to further expand its portfolio and presence in the country. “We will continue to expand our capability and are looking forward for a long and successful leading role in the Indian market,” concludes Mr. Savajols.
