Indian automakers are all set to transition to Bharat Stage 6 (BS6) norms from Apr’20. After operating in a tough environment over the last 15 months, the auto industry now faces the last hurdle of BS6 transition, post which it will likely be ‘business as usual’ from 2HFY21.
With the demand environment showing signs of stability and inventory under control, the BS6 transition is likely to be less problematic (unlike BS4). The BS6 transition would pose a bigger challenge for 2Ws than CVs and PVs given the magnitude of cost inflation, the possibility of a change in competitive positioning and the scope of value migration. There would be limited pre-buying in CVs due to 30-40% excess capacity with fleet operators.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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