BS VI emission norms for CV sector

On 20 Nov, Rating agency India Ratings and Research said the implementation of the BS VI emission norms from April 1, 2020 could create short-term headwinds for the commercial vehicle (CV) segment. There is sharp year-on-year fall in the sales volumes of CVs, especially since May 2019.

The Rating agency believes the pre-buying of BS-IV CVs till end of the fourth quarter of the current fiscal is unlikely to be meaningful as compared with the earlier occasions when new emission norms had been implemented. Assuming customers anticipate a revival in the economy and are offered incentives in the form of discounts, the agency believes the sector might witness moderate levels of pre-buying of BS-IV CVs. This, however, would lead to delays in the purchases of BS-VI CVs post April 1, 2020.