BS-VI transition will make rest of the year difficult for auto industry: SIAM

Terming it as a "huge challenge", SIAM President Rajan Wadhera said on an average each vehicle manufacturer is spending close to Rs 1,000 crore to upgrade all of their model line-ups to meet the new emission norm within a short span.

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Published : Sep 4, 2019, 7:30 PM IST

New Delhi: Auto industry body SIAM on Wednesday said the industry, which has been reeling under a prolonged slump, is staring at a difficult road ahead for the rest of the year due to transition to BS-VI emission norm from BS-VI by April 2020.

Terming it as a "huge challenge", Society of Indian Automobile Manufacturers (SIAM) President Rajan Wadhera said on an average each vehicle manufacturer is spending close to Rs 1,000 crore to upgrade all of their model line-ups to meet the new emission norm within a short span.

"The auto industry, as we all have seen in the past eight months, has witnessed continuous de-growth and August being the worst at 30 per cent," Wadhera said while speaking at Federation of Automobile Dealers Associations (FADA) annual auto retail conclave.

He further said the entire value chain of the auto industry - from component suppliers to vehicles manufacturers and dealers - have been impacted by the slowdown.

"The road for the rest of the year is also looking difficult because there is a huge challenge of migration from BS-IV to BS-VI is awaiting us," Wadhera said.

New technologies coming into the vehicle, which has to be done "in a span of three years across all models and has defect-free products is a huge challenge", he added.

"On an average, an OEM is spending about Rs 1,000 crore to upgrade their product portfolio," Wadhera said.

In order to ensure a smooth transition, he said, "Sales forecasting and operational efficiency has become important on account of the upcoming BS-IV to BS-VI transition".

While the dealers will be managing the front-end, OEMs (original equipment manufacturers) need to ensure that there should neither be loss of sales on account of unavailability of products nor allow inventory build-up or write-off which will create more hardships for the dealers, he added.

In the near future, Wadhera said the auto industry will not only have to deal with slowdown and BS-VI transition but also has "actually prepare for the future mobility" - electric, connected and autonomous.

He further said the entire value chain of the auto industry - from component suppliers to vehicles manufacturers and dealers - have been impacted by the slowdown.

"The road for the rest of the year is also looking difficult because there is a huge challenge of migration from BS-IV to BS-VI is awaiting us," Wadhera said.

New technologies coming into the vehicle, which has to be done "in a span of three years across all models and has defect-free products is a huge challenge", he added.

"On an average, an OEM is spending about Rs 1,000 crore to upgrade their product portfolio," Wadhera said.

In order to ensure a smooth transition, he said, "Sales forecasting and operational efficiency has become important on account of the upcoming BS-IV to BS-VI transition".

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3 mn wearable devices shipped in India in Apr-Jun, becomes 3rd largest after China and US
New Delhi, Sep 4 (PTI) The Indian wearable devices market touched an all-time high shipment of three million units in the April-June 2019 quarter, cementing the country's position as the third-largest wearables market globally after China and the US, according to research firm IDC.
Shipment of wearable devices grew 30.9 per cent quarter-on-quarter (2.31 million units) in the second quarter of 2019, and 123.6 per cent on a year-on-year basis, reaching an all-time high of three million shipments in a single quarter, according to IDC.
"This has further cemented India's position as the third-largest wearables market in the world after China and USA. This growth can be attributed to the rising popularity of the ear-worn wearables," it added.
The ear-worn wearable category grew 122.7 per cent q-o-q and 374.9 per cent annually in the said quarter, overtaking the wrist band shipments for the first time in the country.
The earwear category includes wireless earphones that track health and fitness or enable smart assistants at the touch of a button or through hot-word detection.
This category accounted for most of the market shipments with 55.9 per cent share, followed by wrist bands at 35.2 per cent and watches at 6.9 per cent, IDC said.
"The market for ear-worn devices has seen exponential growth in the last few quarters and this will continue in the coming quarters as well, primarily because traditional audio vendors are moving towards the wireless devices as it provides the ease of operation and comfort of carrying a device, while participating in a fitness activity or taking a call on the go," IDC India Market Analyst Anisha Dumbre said.
Dumbre said several smartphone brands are also launching ear-worn devices since it compliments their smartphone play and they can leverage their brand strength in this new category.
"Moreover, a set of new brands from India are entering the market to ride on the trend of true wireless devices at affordable prices, further helping in the growth of this category," Dumbre said.
Jaipal Singh, associate research manager (client devices) at IDC India, said there is a shift in the lifestyle devices segment, wherein consumers are adopting new kind of devices to track their health and fitness that is reflecting in the uptake of the wearables segment.
"In the wearables category, wrist bands continue to serve as an affordable alternative to smartwatches, however, many companies are striving to bridge the pricing gap between wrist bands and smartwatches to serve the diverse needs of the consumer," he added. PTI SR
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BS-VI transition will make rest of the year difficult for auto industry: SIAM

Terming it as a "huge challenge", SIAM President Rajan Wadhera said on an average each vehicle manufacturer is spending close to Rs 1,000 crore to upgrade all of their model line-ups to meet the new emission norm within a short span.

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