India's Automobile Industry
The Leap to BS-VI Emission Norms
How India jumped directly from BS-IV to BS-VI emission standards in 2020, why it did so, and the costs and benefits for industry and air quality.
Vehicle emissions contribute significantly to air pollution in Indian cities. India’s Bharat Stage norms set limits on pollutants from vehicles, modelled on European standards.
The leap
India moved from BS-IV directly to BS-VI on 1 April 2020, skipping BS-V. BS-VI is roughly equivalent to Euro 6 standards.
The decision, taken in 2016, aimed to cut pollution faster.
What changed
- Much lower limits on nitrogen oxides and particulate matter, especially for diesel vehicles.
- Cleaner fuel with far less sulphur, requiring refinery upgrades.
- New engine technologies and exhaust treatment systems.
Costs
- Vehicle prices rose, especially for diesel cars and trucks, as technology became more expensive.
- Refinery investments of tens of thousands of crores.
- Unsold BS-IV inventory: the Supreme Court ruled BS-IV vehicles couldn’t be registered after the deadline, leaving dealers with stock during the early pandemic.
Market effects
Higher costs of diesel technology led some carmakers, such as Maruti Suzuki, to stop making small diesel cars.
Benefits
Studies estimated substantial reductions in vehicle emissions and associated health benefits from cleaner air over time, though overall air quality also depends on other pollution sources.
Next steps
Further standards, such as real-world emission testing and corporate fuel efficiency norms, continue to tighten rules.
A carmaker calculates that meeting BS-VI for its small diesel engine would raise the car's price too much. It stops selling diesel versions and focuses on petrol and CNG cars instead.
They also required cleaner fuels, refinery upgrades and changed which vehicles companies make.
- India jumped from BS-IV to BS-VI in April 2020, skipping BS-V.
- BS-VI sharply cut limits on nitrogen oxides and particulates.
- Costs included higher vehicle prices and refinery investment.
- Some firms stopped making small diesel cars.
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