On April 1, 2020, the emission norms of vehicles in India will move to a higher level. They will transit from ‘Bharat Stage (BS) IV to BS VI emission norms, skipping the BS V stage. Broadly speaking, the BS VI emission norms will help keep a check on the pollution levels. However, it also means that the auto companies along with the auto casting industry will have to realign many of their practices.

While the BS VI emission norms will have a more near-term impact, the effect of EVs will be felt in medium to long-term impact. BS emission norms are based on the European emission norms, which means that BS VI is on par with Euro-VI norms, operational in many parts of Europe.

‘The Road Ahead for Auto-Casting,’ an April 2019 CRISIL Report anticipates that the BS VI emission norms will affect the auto-casting industry only to a slight extent. While two-wheelers will feel the brunt, the net value of auto castings within this segment is expected to remain largely unchanged. “We estimate auto-castings sales in terms of value to grow 9-11 per cent in fiscal year 2020. This will be largely driven by volume growth owing to expected advancement of sales in fiscal 2020, ahead of the institution of BS VI norms,” the CRISIL report stated.

The auto-casting industry in India, with revenue of Rs 50,000 crore in fiscal 2018, can be categorised into ferrous and non-ferrous segments. The industry comprises major engine components such as cylinder heads, cylinder blocks, gear housing and braking components like brake drums and housings, clutch and flywheel housing.

Diesel vehicles form a small portion of cars and utility vehicles. Hence auto casting components in this case is not so affected as much as commercial vehicles. With the latter, changes are expected in engine components and the exhaust management system, which have a low impact on auto-casting.

It’s essential to rollout new technologies and build an ecosystem so that vehicles are compliant with the BS VI norms. Backed by R&D, there will be a new grade of efficient fuels. And this can happen with large capacity oil refineries that can produce better fuel. This should be cost effective and made commercially available across the country. As the emphasis is on clean air, people should enjoy the societal benefits of cleaner air.

Coming to the emission, even as the vehicle is being built, aspects like the mileage and payload weight related factors need to be reworked in sync with the emission norm specifications.

This is where Big Data analytics comes into play. The data generated during the various stages of vehicle manufacturing will help in precise configuration. Data and algorithms will be tools to lower the time taken to manufacture vehicles. The process will be further supported by an increased use of robotics in the manufacturing chain.

The fuel injection system will have oxygen sensors to indicate the amount oxygen in the exhaust. Thereby the engine control unit (ECU) can adjust the air-to-fuel ratio.

As for two wheelers, the fuel efficiency of gasoline-engine motorcycles will be scaled up. The carburetor needs to be replaced with a more efficient fuel injection system.

In the case of cars and utility vehicles, petrol vehicles are less polluting than diesel vehicles. Around 80 per cent of car and utility vehicle sales are accounted for by petrol vehicles. There may not be any significant change when this segment transits to BS VI. Commercial vehicles mostly run on diesel. Due to higher emissions, components like diesel particulate filter (DPF), selective catalytic reduction (SCR), sensors and electronics need to be added. Yet, as these parts are fitted post the engine the impact on the auto casting industry is low.

These stringent standards of emission norms will hopefully lower the high levels of smog and fog that pollute the air in many of our cities. Coming to vehicular movement, one hopes that the pollutants emitting from the tail-pipe emissions will be lower than what it is now.

As vehicles accelerate from BS IV to BS VI, the content of nitrogen oxides in diesel cars is anticipated to come down by about 70 per cent and by 25 per cent in patrol cars.

The auto casting industry needs to be prepared to meet the requirements of electric vehicles (EV). With environmental pollution concerns mounting across the world, the push for vehicles running on alternative fuel sources has gained momentum. With battery costs plunging in last few years, EVs are fast emerging as a desirable option.

As per the CRISIL Report, when EVs proliferate the traditional internal combustion engines (ICE) is expected to be replaced by lithium ion and other such batteries. Major casted engine components such as cylinder heads, cylinder blocks, and gear housing (comprising around 50 per cent of casted components) run the risk of becoming obsolete.

Consequently, auto casting players will have to collaborate with global and domestic original equipment manufacturers (OEM) to develop motor housing, battery housing, knuckles and turbochargers. These components will be used in electric vehicles. The business strategy should include investments in foreign companies which have existing electric power-train solutions with potential to be leveraged in India. Manufacturing units need to be established to develop lightweight components for two-wheelers, passenger vehicles, hybrids and electric vehicles.

EVs will require several components many of them may be new ones. Seen from the business point of view, there is a possibility that smaller manufacturing units may even collaborate with similar capacity units. This will result in pooling in skills, funds and shared infrastructure. It’s also an opportunity for smaller players to be competitive and keep pace with the requirements of EVs.

For EVs to work, the thrust would be on the charging infrastructure. As a booster, EV makers should be offered fiscal sops to make their products mainstream for a price-sensitive market like India.

BS IV was implemented in 2017 and now we look forward to BS VI in 2020. Nevertheless, there will still be BS IV vehicles on the roads in 2020. These need to be retrofitted. This itself will open out a sub industry.

We also require regulatory newer engine emission norms for off road transport such as ocean vessels and aero planes. Only then can we have cleaner air across the Indian sub continent. 

On April 1, 2020, the emission norms of vehicles in India will move to a higher level. They will transit from ‘Bharat Stage (BS) IV to BS VI emission norms, skipping the BS V stage. Broadly speaking, the BS VI emission norms will help keep a check on the pollution levels. However, it also means that the auto companies along with the auto casting industry will have to realign many of their practices.

While the BS VI emission norms will have a more near-term impact, the effect of EVs will be felt in medium to long-term impact. BS emission norms are based on the European emission norms, which means that BS VI is on par with Euro-VI norms, operational in many parts of Europe.

‘The Road Ahead for Auto-Casting,’ an April 2019 CRISIL Report anticipates that the BS VI emission norms will affect the auto-casting industry only to a slight extent. While two-wheelers will feel the brunt, the net value of auto castings within this segment is expected to remain largely unchanged. “We estimate auto-castings sales in terms of value to grow 9-11 per cent in fiscal year 2020. This will be largely driven by volume growth owing to expected advancement of sales in fiscal 2020, ahead of the institution of BS VI norms,” the CRISIL report stated.

The auto-casting industry in India, with revenue of Rs 50,000 crore in fiscal 2018, can be categorised into ferrous and non-ferrous segments. The industry comprises major engine components such as cylinder heads, cylinder blocks, gear housing and braking components like brake drums and housings, clutch and flywheel housing.

Diesel vehicles form a small portion of cars and utility vehicles. Hence auto casting components in this case is not so affected as much as commercial vehicles. With the latter, changes are expected in engine components and the exhaust management system, which have a low impact on auto-casting.

It’s essential to rollout new technologies and build an ecosystem so that vehicles are compliant with the BS VI norms. Backed by R&D, there will be a new grade of efficient fuels. And this can happen with large capacity oil refineries that can produce better fuel. This should be cost effective and made commercially available across the country. As the emphasis is on clean air, people should enjoy the societal benefits of cleaner air.

Coming to the emission, even as the vehicle is being built, aspects like the mileage and payload weight related factors need to be reworked in sync with the emission norm specifications.

This is where Big Data analytics comes into play. The data generated during the various stages of vehicle manufacturing will help in precise configuration. Data and algorithms will be tools to lower the time taken to manufacture vehicles. The process will be further supported by an increased use of robotics in the manufacturing chain.

The fuel injection system will have oxygen sensors to indicate the amount oxygen in the exhaust. Thereby the engine control unit (ECU) can adjust the air-to-fuel ratio.

As for two wheelers, the fuel efficiency of gasoline-engine motorcycles will be scaled up. The carburetor needs to be replaced with a more efficient fuel injection system.

In the case of cars and utility vehicles, petrol vehicles are less polluting than diesel vehicles. Around 80 per cent of car and utility vehicle sales are accounted for by petrol vehicles. There may not be any significant change when this segment transits to BS VI. Commercial vehicles mostly run on diesel. Due to higher emissions, components like diesel particulate filter (DPF), selective catalytic reduction (SCR), sensors and electronics need to be added. Yet, as these parts are fitted post the engine the impact on the auto casting industry is low.

These stringent standards of emission norms will hopefully lower the high levels of smog and fog that pollute the air in many of our cities. Coming to vehicular movement, one hopes that the pollutants emitting from the tail-pipe emissions will be lower than what it is now.

As vehicles accelerate from BS IV to BS VI, the content of nitrogen oxides in diesel cars is anticipated to come down by about 70 per cent and by 25 per cent in patrol cars.

The auto casting industry needs to be prepared to meet the requirements of electric vehicles (EV). With environmental pollution concerns mounting across the world, the push for vehicles running on alternative fuel sources has gained momentum. With battery costs plunging in last few years, EVs are fast emerging as a desirable option.

As per the CRISIL Report, when EVs proliferate the traditional internal combustion engines (ICE) is expected to be replaced by lithium ion and other such batteries. Major casted engine components such as cylinder heads, cylinder blocks, and gear housing (comprising around 50 per cent of casted components) run the risk of becoming obsolete.

Consequently, auto casting players will have to collaborate with global and domestic original equipment manufacturers (OEM) to develop motor housing, battery housing, knuckles and turbochargers. These components will be used in electric vehicles. The business strategy should include investments in foreign companies which have existing electric power-train solutions with potential to be leveraged in India. Manufacturing units need to be established to develop lightweight components for two-wheelers, passenger vehicles, hybrids and electric vehicles.

EVs will require several components many of them may be new ones. Seen from the business point of view, there is a possibility that smaller manufacturing units may even collaborate with similar capacity units. This will result in pooling in skills, funds and shared infrastructure. It’s also an opportunity for smaller players to be competitive and keep pace with the requirements of EVs.

For EVs to work, the thrust would be on the charging infrastructure. As a booster, EV makers should be offered fiscal sops to make their products mainstream for a price-sensitive market like India.

BS IV was implemented in 2017 and now we look forward to BS VI in 2020. Nevertheless, there will still be BS IV vehicles on the roads in 2020. These need to be retrofitted. This itself will open out a sub industry.

We also require regulatory newer engine emission norms for off road transport such as ocean vessels and aero planes. Only then can we have cleaner air across the Indian sub continent.