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Maruti could benefit the most from BS VI norms policy

Rachit Hirani Rachit Hirani Thursday 14 January 2016, 12:06 PM

As per a report made by Kotak, Maruti is likely to benefit the most from the BS VI norms. The government has decided to move directly to BS-VI fuel standards from BS-IV. The cost of implementing it is not so steep hike in prices for diesel passenger and commercial vehicles. Automobile manufacturers are already exporting vehicles to Europe with Euro 6 norms, and hence moving on to BS-VI isn’t a major challenge.

At the moment, Maruti Suzuki has 60 per cent market share in petrol passenger vehicles and 32 per cent in diesels. So, Maruti will become the biggest gainer if there is a rise in demand for petrol vehicles as per the report. A major shift to petrol engines will happen as per Kotak’s report and Maruti’s market share in petrol will bump up to 70 per cent.

Mahindra will be the most affected brand as it has a majority of diesel engines. Even though the brand has invested in alternate vehicles and is developing petrol engines, it might have to finish this faster. The cost of light commercial vehicles and trucks will increase significantly and automakers will have to increase investment in CNG technology, as per the report.

 

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