Mahindra to develop BS-VI technology by investing 1000 Crore – TyreCafe

by Editor News


Mahindra & Mahindra said that it will switch to the BS-VI emission norms ahead of schedule and carry out the project in 20 per cent lower cost than estimated due to higher localization. Mahindra has planned to upgrade eight diesel and four petrol engines of more than 50 products over the next 12 months. This transition needs an investment of over Rs. 1000 crore.

The government of India had announced in 2016 that the Indian auto industry will skip BS-V emission norms and move directly to BS-VI emission norms from April 2020 to minimize air pollution in the country.

Pawan Goenka, managing director of Mahindra and Mahindra said that Mahindra will introduce its first BS-VI petrol vehicle at the beginning of the second half of this financial year. The BS-VI diesel vehicles will be launched only when BS-VI compliant diesel becomes available.

Due to the high investments made by automakers in technology for BS-VI emission, an increased price of Rs 1 lakh on diesel-engine cars and Rs. 25,000 on petrol cars is expected. The increased prices of diesel engines have led many manufacturers to discontinue small diesel engines, while Maruti Suzuki has announced the discontinuation of diesel vehicles completely.

Goenka said that Mahindra has successfully done the transition at a much lower cost than what it had earlier expected. Mahindra will also discontinue its small 1.2-litre diesel engine that it offers on its entry-level car KUV 100 due to increased cost. The company will, however, continue its eight diesel engines across its entire automotive range.

The company has successfully done 95 per cent of in-house development and the end products are expected to have almost 99 per cent localised content.

Mahindra is popular for manufacturing SUVs with diesel engines. According to Goenka, Mahindra also wants to establish itself as a maker of petrol engines. Therefore, the company will offer three petrol engines as well.



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