CHAPTER IV

STRATEGIES ADOPTED BY TOP 5 CAR MANUFACTURERS IN INDIA TO

CONFORM TO THE BSVI NORMS:

1. Mahindra BSVI Diesel Engine Strategy

Mahindra being one of the top manufacturer in India has revealed its strategy for diesel
engines to assure that they meet BS VI regulations. Presently, Mahindra had a total of eight
diesel engines, but Mahindra is focusing on only one engine to meet the BS VI regulations.
Mahindra as per recent article said that they will be stopping production of KUV 100 NXT
due to low sales and low demand. Going forward with small capacity engines, both 700cc
and 900cc engines will be having turbocharges to meet the BSVI emission norms. Mahindra
largest engine 2.5 four-litre cylinders will be going through change to achieve emission
standards. To talk about this engine, it was first introduced three years ago and from then it
has been changed twice to conform with the various BS Norms across various stages.
Pawan Goenka, the Managing director of Mahindra said that prices of the new BS VI engines
vehicles such as SUV’s will be increasing as Mahindra has already invested more than 1000
crore in updating from BSIV TO BSVI norms. Mahindra’s engine had resulted in over 30
patents and introducing 1482 new components across models.

2. Maruti Suzuki Strategies to Conform with BSVI Norms

Maruti Suzuki has already launched BSVI range of vehicles into the market, and Maruti said
that they got a good response from its customers. About 70% of the total petrol vehicles
which are sold in the market recently, constitute to BSVI vehicles. Maruti Suzuki introduced
first BSVI compliant engine petrol car Baleno in April 2019 itself. Now the launch of Baleno
was then followed by Alto 800, Wagon R, Swift Dzire and Ertiga much before the
implementation date of BSVI regulations. Maruti Suzuki expands its BSVI car line-up to 8
models and it has already sold over two lakhs of units in 2019.
 3. Hyundai Motors

Hyundai, the South-Korean auto maker plans to roll out to upgraded BSCI compliant models.
Now only the company made changes to achieve BSVI norms but also kept on selling BSIV
compliant cars at a lower price, so that stocks get finished. Hyundai also said that they will
stop producing diesel cars like companies such as Ford and Honda. This means that all the
small diesel cars of Hyundai such as Venue. I20 Elite, Grand I10 and Xcent will get BSVI
engines post May 2020. In comparison with India’s topmost manufacturer Maruti Suzuki,
they said that they will discontinue production of diesel cards in the BSVI era if there is a less
demand from customer side. The cost of vehicle will be rising by a lakh of rupees in
upgrading to BSVI engines from BSIV. Whereas if upgrading to petrol cars of BSVI norms it
will not be as expensive as that of diesel cars. Hyundai subsidiary Kia motors have already
entered into the market with BSVI engine norms and we can see the result of it through the
demand generated for Kia Motors this year.

4. Tata Motors

India’s largest automobile manufacturer of utility vehicles, buses, cars, trucks and also
defence vehicles is Tata Motors. It is not only India’s top manufacturing company but also
part of the 100 billion US dollar Tata Group. Korea, UK, Thailand, Indonesia and South
Africa are the countries in which Tata motors are present. Tata Motors has global network of
76 subsidiary and various associates companies as Jaguar, Land Rover in UK.
Tata motors have declared that they received BSVI certificate of approval of its new 3.5L NA
SGI CNG engine which is given by the Automobile Research Association of India (ARAI).
As Tata being the first Original Equipment Manufacturer (OEM) in India, it was great
achievement to get BSVI certified.
The process of upgrading to BSVI will be costing a great amount of money for all the
automobile manufacturers and also it is difficult for manufacturers to estimate how much
money will be required in upgrading BSVI norms. In an interview with The Hindu, Tata
Motors Managing director and Chief Executive Officer said that Tata Motors have already
invested 1200 crores in the conversion to BSVI engines. Tata invested almost a sum of One
Thousand Twelve hundred crore for BSVI transition of new models such as Tiago, Tigor and
Nexon.
Tata Motors has recently launched the Tacnet 2.0 to collaborate with Auto-tech start-ups.
Tacnet 2.0 theme is based on the areas in which Tata Motors are interested and Tata is
looking for the opportunities in the people to do this. Tata Motors will be helped to get
connected outside world with the help of TACNET operations.

5. Ashok Leyland

Before the date of implementation of BSVI engines, Ashok Leyland has already launched
heavy-duty commercial vehicles into the market. They have already received BSVI
certification for heavy-duty vehicles. It was also the first commercial vehicle to achieve this.
All the automobile manufacturers are running out of time to upgrade to BSVI emission norms
as the deadline is being closer. Now if we compare with other automobile manufacturers,
Ashok Leyland is a way ahead of the rest of them when it comes to implementation of these
norms.