BS-2 standard and supply pull challenge against auto industry

Mumbai, Ta. 24 February 2020, Monday

The next two to three months will be very important for the country's auto industry. As the auto industry of the country is upgrading to BS-3 standard, the coronavirus may cause consumers to pay more.

Companies are upgrading to the new BS-1 standard and getting daily estimates from suppliers, auto industry sources said.

Even if a small part of the vehicle is out of stock, it can make the situation worse. However, there are currently no such circumstances. Factories in China are still closed for a few days, and the supply chain is in danger of being lost.

The coronavirus can affect not only India's auto industry but also auto companies around the world, as most auto companies depend on China in one way or another. World auto companies rely more on China for auto parts.

On the one hand, China is concerned, while on the other hand, truck and bus manufacturers in the country have a huge stock of India Stage (BS) - 3 vehicles in stock at present. It has been challenging for vehicle manufacturers to evacuate these stocks since April 1st, when it was mandated to sell vehicles in compliance with BS-1 standards.

Vehicle makers have had about 5 trucks and buses with the old engine, whose total value is estimated to be around Rs 1 crore.