Mahindra and Mahindra estimates that per vehicle cost will see an increase between INR 90,000 to INR 1,50,000 once their cars are BS VI compliant by 2020.
These proposed norms are mandatory for diesel vehicles and Mahindra will have to incur a capex of INR 500 crores over the next four years to ensure that all vehicles comply with these norms.
With BS IV norms currently in force, the Government of India has announced that by 2020, BS VI norms will be introduced and all auto companies are immediately taking steps to meet this deadline.
BSIV grade fuel was introduced in 2010 and is now available in 39 cities across India. The Government is under pressure to skip the BS V stage and advance to BS VI considering the quality of air in the country especially in Delhi. India was expected to move to BS V norms in 2020 and to BS VI only in 2024.
Mahindra is also considering petrol engines in the 1.2 liter, 1.5 liter, 1.6 liter and 2.2 liter capacity for a number of diesel models that include XUV500 and Scorpio. These petrol engines are slated to be introduced during a year while it will also be presented on the company’s other models in due course.
Photos – Mahindra TUV300