Indian Automobile Industry to Invest 1 Lakh Crore?

New Delhi, May 10: Indian Auto industry manufacturers association SIAM said that "Indian Automobile Industry should invest around Rs 1 lakh crore for upgrading the vehicles to meet various upcoming regulations related to emissions, safety, and fuel efficiency".

We know that from April 1, 2017, India has upgraded all its vehicles to BS IV from BS III emission standards.

India has also made some modifications in vehicle manufacturing norms which will be implemented from 2019.

The changes proposed are as follows

* From October 2017, all new models manufactured will have to meet offset and side crash test norms.

* From 2018 all new vehicles must follow pedestrian safety models.

* From April 1, 2020, India vehicles must be upgraded to BS VI norms of emission.

So in order to meet the above standards, the industry has already started investing in R&D to develop the new model vehicles.

Sources say that the amount of investment needed for the production of new vehicles may be RS 1 lakh crore.

Already companies have started investment in the manufacture of BS VI vehicles because of the recent sad experience they had when all of a sudden Supreme Court had banned sale and Registration of BS III vehicles from April 1, 2017.

SIAM executive Director KK Gandhi said that the amount invested will be huge because there is "no technology available for upgradations of vehicles and we have to develop from scratch".

Let's hope that Auto industry finds an Innovative solution for investment so that the cost of up gradation of vehicles may not be born by customers.