The BS-VI transition will make the rest of the year difficult for the automotive industry: SIAM

New Delhi, September 4 () The automotive industry agency SIAM said Wednesday that the industry, which has been reeling under a prolonged fall, is facing a difficult road for the rest of the year due to the transition to the standard BS-VI of BS-VI before April 2020.

Qualifying it as a great challenge, the president of the Society of Indian Automobile Manufacturers (SIAM), Rajan Wadhera, said that, on average, each vehicle manufacturer is spending about Rs 1,000 million to update its entire line of models to comply with the new emission standard within a short time

The auto industry, as we have all seen in the last eight months, has witnessed continued growth and August is the worst with 30 percent, Wadhera said, while speaking at the annual car retail sale of the Federation of Dealerships of Automobiles (FADA) conclave.

He also said that the entire automotive industry value chain, from component suppliers to vehicle manufacturers and dealers, has been affected by the slowdown.

The road for the rest of the year also seems difficult because there is a big migration challenge from BS-IV to BS-VI, Wadhera said.

The new technologies that enter the vehicle, which must be done in a span of three years on all models and have defect-free products is a great challenge, he added.

On average, an OEM is spending around Rs 1,000 million rupees to update its product portfolio, Wadhera said.

In order to ensure a smooth transition, he said, sales forecasting and operational efficiency have become important due to the upcoming transition BS-IV to BS-VI.

While dealers will manage the front-end, OEMs (original equipment manufacturers) must ensure that there is no loss of sales due to lack of product availability or allow accumulation or cancellation of inventory, which will create more difficulties for distributors, he added. In the near future, Wadhera said that the automotive industry will not only have to deal with the BS-VI slowdown and transition, but will also really prepare for future mobility: electric, connected and autonomous. MSS RKL BAL

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