‘Not the right time to implemen next stage of emission norms’
The country’s largest carmaker Maruti Suzuki India (MSI) has said the implementation of the next stage of emission norms in the country from next year will force automakers to increase vehicle prices, leading to further drop in sales for the industry which has been reeling under a severe slowdown.
The auto major also noted that people were finding it difficult to buy new cars as the prices have gone up significantly over the last few years.
“I don’t think it is the right time (to implement) the new stage of CAFE (corporate average fuel efficiency) norms,” MSI chairman R C Bhargava said.
He was replying to a query on a possible impact on the auto industry from the implementation of the next phase of CAFE norms.
“Over the years, the price of the cars have been going up.
Now the price has gone up so much that people are not able to afford cars, so the growth of the industry has come down to zero. To further increase the cost, especially when the income of people has not grown during the Covid period, the industry will further go down,” Bhargava stated.
Auto industry body Siam has also sought postponement of CAFE Phase II regulations, which are set to come into force from next year, to April 1, 2 but are yet to hear from the ernment regarding the dem
In order to meet the C targets, OEMS would hav find efficient powert options which would entail ther investments. In Pha (2017-2022), CAFE no require average corporate emissions to be less than gm/km. In Phase II (2 onwards), emissions need t further reduced to less tha gm/km.
Bhargava said that fo industry to grow, sales pla important role. The more customers buy, the more industry grows, he stated.
“Customers have been un to buy (cars) at the same now because the custo affordability has gone do Two wheeler sales are gro because people can only af a two wheeler,” Bhargava n
He said that the dome auto industry has been ree under a slowdown even be the Covid-pandemic hit.