Enter your city for weather info

Invalid City Name

rain icon
Temperature 22°C
Status Clear
City New York
4-Day Forecast
Humidity icon

50%

Humidity

wind icon

15 km/h

Wind Speed

Please Enter OTP For Tractor Price कृपया ट्रैक्टर की कीमत के लिए ओटीपी दर्ज करें
Enquiry icon
Enquiry Form

Switchover to emission norms unlikely to create problems for tractor industry: ICRA

Switchover to emission norms unlikely to create problems for tractor industry: ICRA

    Switchover to emission norms unlikely to create problems for tractor industry: ICRA

tractors below 50HP will migrate to the new norms from October 2023.

14 Feb, 2020

New Delhi: The proposed Bharat Stage (BS) Trem IV emission norms for the domestic tractor industry is unlikely to create major headwinds for the sector, ratings agency ICRA said on Thursday.

The new emission norms will only be applicable for tractors with capacity above 50HP, which accounts for only 13 percent of industry sales (in unit terms), the agency pointed out and therefore the switchover will have a minimal impact on the industry.

The BS Trem IV regulation which applies to diesel engine equipment including agricultural tractors and construction equipment will come into force from
October 2020 onwards. The rest of the industry (i.e. tractors below 50HP) will migrate to the new norms only from October 2023, the agency added.

It further said the evolution to new norms is in line with the broader automobile industry in India, which will be migrating to Bharat State (BS-VI) emission norms from April 2020.


Giving more insights, Rohan Gupta, AVP, Corporate Sector Ratings, ICRA Ltd. says, While major technological changes (including both engine and after treatment technologies) are required to migrate to the proposed norms, the technological know is readily available with OEMs, given that tractors exported to various countries are already meeting the evolved emission norms guidelines."

He, however, said the pass-through of the incremental cost to the farmers is likely to prove to be a challenge, given the price-sensitive nature of the farming community.

"Although tractor OEM's are yet to announce revised prices after incorporating the changes required for the stringent emission norms, complete pass-through of prices (expected to range between 10-12 percent for higher HP categories) would be unlikely and the same could constrain profitability indicators of tractor OEM's to an extent,” Gupta added.


ICRA mentioned that the tractor industry (across all HP categories) in India currently complies with Trem III A emission norms which were implemented back in April 2010 and April 2011 in a phased-wise manner. However, emission regulations in developed countries such as Europe and the USA and many other key markets have progressed through a series of stringent stages over the past decade and are currently significantly stringent than those applicable in India, the agency explained.

Overall, ICRA added, given that the proposed evolution to Bharat Trem IV is restricted to only the high HP segment, the impact of the proposed emission norm evolution on the demand in the industry is likely to be much lower than the disruption seen across other automobile segments. OEM's are also expected to make an effort to rejig their portfolio to an extent through the launch of products under new HP categories, with a view of limiting the impact of the same, it said.


Courtesy: Economic Times

 

Read More

 FDW login panel for Mahindra tractor dealers  | working and benifits       

FDW login panel for Mahindra tractor dealers | working and benifits

Read More  

 Vehicle of Tomorrow- Ola Electrc Scooter is coming to your way       

Vehicle of Tomorrow- Ola Electrc Scooter is coming to your way     

Read More  

 Indian tyre industry to grow 13%-15% in FY22: ICRA       

Indian tyre industry to grow 13%-15% in FY22: ICRA                       

Read More

Top searching blogs about Tractors and Agriculture

Top 10 Tractor brands in india To 10 Agro Based Indutries in India
Rabi Crops and Zaid Crops seasons in India Commercial Farming
DBT agriculture Traditional and Modern Farming
Top 9 mileage tractor in India Top 5 tractor tyres brands
Top 11 agriculture states in India top 13 powerful tractors in india
Tractor Subsidy in India Top 10 tractors under 5 Lakhs
Top 12 agriculture tools in India 40 Hp-50 Hp Tractors in India

review Write Comment About Blog.

Enter your review about the blog through the form below.



Customer Reviews

Record Not Found

Popular Posts

https://images.tractorgyan.com/uploads/113933/669a4b8101afa-what-farmers-can-expect-from-union-budget-2024.jpg

क्या-क्या गुड न्यूज़ लेकर आ सकता है यूनियन बजट 2024 किसानों के लिए?

संसद के मानसून सत्र के दौरान 23 जुलाई 2024 को वित्त मंत्री निर्मला सीतारमण मोदी सरकार 3.0 के लिए यून...

https://images.tractorgyan.com/uploads/113918/669a031adb710-solis-tractors-the-most-powerful-multi-speed-tractor-in-india.jpg

What Makes Solis Tractors the Most Powerful Multi-Speed Tractor in India?

Solis Tractors needs no introduction as this tractor manufacturing brand has managed to become &lsqu...

https://images.tractorgyan.com/uploads/113823/6692222f0f3c2-vst-zetor-introduced-tractors-in gujarat.jpg

VST Zetor Introduced Tractors in Gujarat

12 July 2024: VST Zetor range of tractors, jointly developed by VST Tillers Tractors Ltd and HT...

Select Language

tractorgyan offeringsTractorGyan Offerings