Filters will play a very important role in the impending transition from BS-IV to BS-VI. Mr. P.S. Krishna Kumar, Director – OE Business Unit, MANN+HUMMEL, shares his thoughts on what to expect from the auto industry’s leap to BS-VI.
Excerpts:
Market impact
Impact to the industry will be significant as we see several OEMs clearly carving out their product strategy in the wake of BS-VI changes. We may see a reduced demand for lower capacity diesel engines and new technologies being introduced like turbo-charged gasoline engines in future.
MANN+HUMMEL globally has been through these shifts in technology multiple times and has adapted to these changes through innovative new products introductions. In line with this, MANN+HUMMEL India is also equipped to support customers’ expectations and grow along with the market through innovative product launches in air, oil & fuel filtration.
Cost implications
The market is anticipating a significant increase in costs due to the inclusion of next generation technology products to meet the stringent BS-VI norms. This initial cost of investment will be a significant impact to the fleet customers, however, there is scope for improvement in total cost of ownership of the fleet by tapping into the potential of the new technologies.
Key measure for smoother transition to the new norms would be engagement with end customers through: 1) Training on the new technologies; 2) Providing clarity on the benefits from new technologies; 3) Periodic interphase to demonstrate the performance of the new technologies meeting the intended performance targets.
Challenges
1) Market correction on demand; 2) Increased dependency on authorised service due to complex technology parts; 3) Avoid misuse of new systems and meet target performance over vehicle lifetime. Preparations – Focussed engagement of all stakeholders to ensure market understanding of the new technologies.
Opportunities
1) Move to high performance systems and increased value add for industry players; 2) Increased operating efficiencies of systems, thereby optimising total cost of ownership (Long service life interval filters; 3) Environment friendly
Outlook
Although the market has been very muted for the first quarter of FY19-20, there is an expectancy of growth in the future for sure given the overall market potential in India.
We at MANN+HUMMEL have been diversifying our business model to cushion us against any segment specific impact. We would be still having a double-digit growth compared to the previous year on account of the new opportunities we have invested into.