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Tata Motors Expects To Ready BS VI Compliant CVs By December 2019

Tata Motors spends around Rs. 3,500 crore annually for research and development of vehicles and 40 per cent of that amount is utilised for commercial vehicles sector. In fact the company has already announced that it plans to invest Rs. 1500 crore across segments in the CV business this year.
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By Carandbike Team

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1 mins read

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Published on August 28, 2017

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Highlights

  • Tata Motors will invest Rs. 1500 crore across segments in the CV business
  • Tata Motors spends around Rs. 3,500 crore annually for R&D
  • Tata Motors is working on the new-gen engines for HCVs and LCVs
Tata Motors has been on the backfoot for a while now and this is not just in the passenger vehicle space. The company's commercial vehicles haven't performed as well as the company would have liked it. In fact, in the first quarter of FY18, the company's M&HCV truck business saw a negative growth of 36 per cent (year-on year) while the bus segment too showed a slump of 25.1 per cent. On the light commercial vehicle side of business the only growth came from trucks which soared 4.4 per cent. Overall, the company showed a growth of 6 per cent in July 2017 as compared to the same month in 2016. While Tata Motors has said time and again that majority of the losses or de-growth that it has been a witness to is due to the government of India's initiatives like demonetisation, BS-III vehicle ban and of course the GST roll out, but now that things are starting to stabilise, it will set the stage for a growth with a new outlook and product planning.

According to a Supreme Court verdict, the BS-VI emission standards would be implemented on vehicles from April 1, 2020 and Tata Motors will be ready for it. Speaking during a press conference recently, Guenter Butschek, CEO and MD, Tata Motors said, "We are already getting ready to introduce BS-VI compliant engines in India and our R&D department is already working towards this. We are hoping to get them ready in time and it may be as early as December 2019."

The automobile manufacturer spends around Rs. 3,500 crore annually for research and development of vehicles and 40 per cent of that amount is utilised for commercial vehicles sector. In fact the company has already announced that it plans to invest Rs. 1500 crore across segments in the CV business this year. As far as powertrains go, Tata Motors is working on the new-gen engines for HCVs and LCVs which will comply with BS VI norms which will soon come to effect in India. The company plans to work on engines with the SCR (Selective Catalytic Reduction) technology which will help it become BS VI ready. Thanks to the SCR technology, the engines operate at more optimal combustion temperature providing better power, fuel efficiency and lower NOx and particulate matter generation.

With the new technology as also alternative fuel solutions like LNG buses, Electric and fuel cell buses, Tata Motors is looking to aggressively expand its footprint in the commercial vehicle segment and with it consolidate its position as a market leader.

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