India’s automobile industry is set to change significantly with the implementation of BS VI emission norms and proliferation of electric vehicles (EVs).
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.
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 such as brake drums and housings, clutch and flywheel housing.
So how will the transition from BS IV to VI emission norms and adoption of electric vehicle impact the auto-casting industry?
On April 1, 2020, India will transition from BS IV straight to BS VI emission norms, skipping the BS V stage. These norms are expected to impact the whole automobile industry barring the tractor segment, which has, therefore, not been included in this analysis.