Challenges ahead, but industry will manage: Pawan Goenka

To comply with BS VI norms auto companies will have to bring in the basic technology from Europe, the M&M executive director said

The mandate to comply with the BS VI norms, which is equal to the emission standards of Euro VI, by skipping BS V is a challenge and the automobile industry is geared up for many changes, said Pawan Goenka, executive director, Mahindra and Mahindra.

He added that especially the engineers in the industry, will see exciting times in the next four years, considering it has to adapt itself to comply with the new safety and emission standards.

Speaking to the reporters in the sidelines of the 20th anniversary event of the Society of Automotive Engineers India (SAEIndia), he said “I think there are no further surprises. The emission norms, safety norms all are announced. At least we know what we have to do for next four years and we will work on it. I am not, by any means, a worried man.”

Speaking about the BS VI, he said that the companies would require to bring in the basic technology from Europe, and it has to be modified for the Indian vehicles.

The big challenge in BS VI is how it is going to be keep cost under control. At the current levels, the costing could go up to around Rs 90,000 per vehicle, which at the selling price it will become Rs 1.5 lakh.

“Challenge for us is how do we reduce the cost and that is what our engineers are working on right now. Ofcourse, timelines are tight and we have to make sure we do everything as per the plan we have made,” he added. Companies like Mahindra and Mahindra have implemented BS VI with one or two models, but it has to be taken up to six to eight different platforms and three or four different engines.

However, the technology is well understood, and it is not that it will put the companies in any disadvantage compared to any other multinationals. “To some extend we are starting after some technologies are matured. So we have an advantage,” he said.

He added that while the ban on diesel cars are a temporary phase till March 31 and if it continues beyond that companies will have to rejig their plans.

“For us, we have a 2 litre engine getting ready which can be substituted for all our 2.2 litre versions, he added.

Commenting on the cess introduced in the recent Union Budget, he said that most of the companies would not have passed it over to the consumer in March and April would be a better indicator for the impact, considiring that that is when the customers would start feeling the pinch of the price. While there would certainly be an impact, it is difficult to say whether it is minor or major, he added.

Speaking in the anniversary meeting, he said that the the automobile engineers will have busy and interesting times in terms of developing products as per the regulatory standards set by the government.