Audi India head Joe King on Saturday said that he feels the move from BS-IV norms to BS-VI norms directly would be a good move and beneficial for manufacturers, as it reduces complexity and costs substantially.
However, he said that what he is scared of is the fact that the adequate fuel quality to implement this may be hard to achieve.
In a drastic move to curb pollution and make vehicles cleaner, the government has come out with an announcement that India will move directly from BS-IV to BS-VI by 2020.
This announcement has placed most car makers in a fix as a slew of regulations have hit them.
New vehicles with a diesel engine capacity of above 2000 CC are not allowed to be registered in Delhi.
These rules have confused car makers In terms of diesel issue.
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"We feel that short-term decisions lead to increased uncertainty and ambiguity for the future not just for manufacturers but also for dealers and customers. As manufacturers, we need clarity on policy direction so that we can amend our strategy in line with the customer demand," said King.
"We welcome the move towards BS VI. In fact, it would be a beneficial for us, as it reduces complexity, and therefore, the costs substantially. However, we require the adequate fuel quality to implement this," he added.
Despite this, he continues to see India as a market where the luxury segment will grow.
"India is still very young in comparison to the other markets. Currently, it is a little over one percent of the total market. In established markets, it is in the range of 10-15 percent, so there is undoubtedly huge potential," he said.