New safety, emission rules spell riches for parts firms
New Delhi, Dec. 1 -- Anti-lock brakes? Sound alerts for EVs? Ever-changing emission norms? For India's nimble auto parts makers, every new regulation to raise safety and lower pollution is opening up business avenues.
Over the next two years, anti-lock braking systems (ABS), acoustic vehicle alerting system (Avas), corporate average fuel emissions III (CAFE III) and tractor emission norms stage V (Trem V) will be mandatory for various classes of vehicles. The whole industry will switch to Bharat Stage 7 emission norms in the next few years, though the dates are not set yet. Among the component makers seeing opportunities in the advancing technologies are Bosch Ltd, Tenneco Clean Air India Ltd, Endurance Technologies Ltd and Uno Minda Ltd.
The new rules will help achieve higher content per vehicle, said Arvind Chandrasekharan, chief executive at Tenneco Clean Air India. "(Higher) content per vehicle comes in two parts. One is legislation. For example, BS6 going to BS7, Trem IV going to Trem V for tractors, and CAFE norms, which will force a gasoline particulate filter in passenger vehicles," Chandrasekharan said.
The BS7 transition aims to cut down emission of nitrogen oxide and other pollutants in diesel and petrol cars while CAFE norms will cap average carbon dioxide emissions of a carmakers' fleet. Trem V regulations aim to improve efficiency and slash emissions of all tractors.
The Centre has proposed to roll out Acoustic Vehicle Alerting System (Avas), a pedestrian warning system that uses artificial sound to alert road users to the presence of a quiet electric vehicle, especially at low speeds. Uno Minda is ready for the Avas opportunity, chief financial officer Sunil Bohra said, pointing to its proposed implementation in two years.
"We have already been working with our customers with this product, which has been ready for almost, I would say, three years now. And we are at the stage where we will be able to capitalize on this very fast," Bohra told analysts during a 7 November earnings call.
Bosch India is similarly keen on ABS that the government wants on all new two-wheelers to reduce skidding.
"In terms of capacities, we are very well prepared to handle the increased demand that's likely to come out of changes in legislation," MD and chief technology officer Guruprasad Mudlapur said on a 11 November earnings call. Currently, ABS is mandatory for bikes with more than 125 cc engine capacity. Business got a boost when two-wheeler firms were mandated to install systems to detect malfunctions leading to higher emissions, Mudlapur added.
Endurance Technologies is also keen on the looming ABS opportunity. At a post-earnings call on 13 November, MD Anurang Jain said the company has ordered a production line to raise ABS capacity by 1.2 million units and is ready to order a similar line depending on the government decision. Its current capacity of 640,000 will be fully utilized by the end of March 2026....
To read the full article or to get the complete feed from this publication, please
Contact Us.