If you are a car owner, then you already know that Indian laws mandate certain necessities for vehicles being driven on the roads. In April 2020, the Indian motor industry is set to usher in the BS6 fuel regime, in accordance with the Supreme Court’s ruling which sets to lower emissions. Based on European emission norms, the Bharat Stage (BS) norms were initially rolled out in 2000 with successive versions being mandated in 2001 and then 2005.
The new emission standard mandates that both manufacturers of automobiles and fuel distributors will need to upgrade their products to meet the new norms. BS6 fuel will have to be made widely available across the country, for automobile users to be able to follow the mandates. Customers will also need to buy new vehicles in many cases, as cars being driven with the outdated BS4 fuel will no longer be allowed to ply on Indian roads.
When it comes to the fuel economy, BS6 engines are being brought in to replace the incumbent BS4 fuel norms. The major difference between the two is in the sulphur content and the resultant emission levels. Since BS6 fuels have lower sulphur content as compared to BS4, they pollute less as well. Unfortunately, this also results in decreased fuel efficiency leading to the lower fuel economy of BS6 engines.
For petrol vehicles, this is not really a problem and cars with BS4 engines will comfortably run on BS6 fuel since the difference between the fuel variants is negligible. However, with diesel vehicles, the engine must be upgraded to match the fuel. This is because the BS4 diesel type has 5 times the sulphur content as that contained within BS6. Sulphur content within a diesel engine works as a lubricant for diesel injectors which ionize fuel for combustion purposes. Using the BS6 diesel within BS4 vehicles will result in an injector wearing out prematurely since low sulphur content in the fuel will cause less lubrication.
Currently, BS6 fuel is being sold across outlets in the Delhi-NCR region. While currently it is being sold at the same price as BS4 fuels, this price is expected to rise as the transition gets completed. Refineries will require some investment for upgradation of the fuel and for increased refinement processes, which are expected to result in a hike in fuel prices.
In order to have enough of their vehicles on the road by the time the April 2020 deadline comes around, car manufacturers are increasing expenditure on R&D and making other improvements to make their cars viable for Indian roads. As a result, these costs incurred by the manufacturers will be passed on to the buyers. Car owners can expect prices to rise by 2-3% for petrol cars, while diesel cars are expected to witness an 8-10% hike in prices. However, while buying a car, its price is only one of the many considerations. In India, buying a car also requires buying the best car insurance. With the new set of standards, car insurance policies are also likely to see some restructuring with some hikes in premium prices. You can apply for car insurance with your new BS6 fuel compliant vehicle, and enjoy coverage from a range of disasters both, man-made and natural. Car insurance policies, available on Finserv MARKETS, can be yours with premiums starting for as little as Rs. 2072 per year.
Currently, as car manufacturers attempt to phase out their older models, discounts on the purchase of new cars are bound to be higher. However, these cars will have BS4 engines. If you are looking to purchase a car for the future, which will also have a resale value that is appropriate in terms of the price you will pay, it is best to wait until the transition is complete and then purchase a car.
Pollution owing to vehicle emissions is a major causal factor causing pollution in Indian cities. Until concrete steps such as this transition occur, it is unlikely that Indian cities will enjoy any respite.
Mandating a transition to BS6 fuels is a step in the right direction by the Supreme Court, since at least the latest technology will ensure lower emissions.
Meanwhile, while upgrading to the latest vehicle or fuel, don’t forget to upgrade to the best car insurance policies as well. Apply for Bajaj Allianz car insurance on Finserv MARKETS and enjoy cashless servicing at more than 4,000 network garages across the country.