01.07.2019

This white paper highlights the historical, present, and upcoming / planned emission standards in India, its impact on OEMs, and the ways to tackle them. This write-up is the result of interviews conducted by Ducker with several heavy equipment end-users, dealers and manufacturers in the targeted region as well as news articles & other online publications.

SUMMARY 


The emission regulations for the Non-Road Mobile Machineries (NRMM) were last updated in 2011, when India implemented Bharat (CEV) Stage III regulation on equipment with 8 to 130 KW capacity. The BS III which was in line with US Tier 2/3 requirements and brought in a uniform standard across all NRMM, covering small engines with less than 8KW capacity to large engine capacity 560KW. The standard targeted 29% reduction in hydrocarbons and nitrous oxide till for engine power less than 37 KW and over 50% for engine power more than 37 KW.

After a span of nearly ten years, the NRMM regulatory environment is poised for a two-stage update in a short span of time, targeting a combined reduction of HC+NOx emission to 85% by 2024.

India is currently in the final stages of implementing Bharat (CEV) Stage IV regulations on NRMM with engine capacity of 37KW to 560KW. And upping the ante, within the next three to four years, the Central Pollution Board Control, Government of India aims to introduced Bharat (CEV) Stage V regulations, further targeting to reduce the PM emission by 40% for diesel engine power greater than 56 KW.

The long road of NRMM regulations started nearly two decades ago when Bharat (CEV) Stage II emission standards for diesel construction machinery were adopted in two stages:

·BS (CEV) II – Phase I Standards implemented on October 2007 covering medium to large engines with engine power ranging from 19 to 560 KW

·BS (CEV) II – Phase II Standards implemented on October 2008 covering only the smaller engines with engine power less than 19KW (were not regulated under the EU Stage I)



The Indian construction equipment industry will remain very dynamic in this decade and see significant changes in regulatory environment. The forced changes from the emission regulations offers significant growth opportunities to all the value chain participants. However understanding customers concerns on acquisition cost, ownership cost, equipment performance and fuel efficiency due to implementation of emission regulations is critical. Both OEM and suppliers may have to form multi-pronged strategies on technology shifts and sourcing to stay ahead of the competition and minimize the impact on its growth plans in India. Connect with the Ducker team to  download the full whitepaper and learn more on  how to refine your strategy to address concerns and  gain competitive edge.