Construction Equipment Industry
Commits to a Sustainable Green Environment: Upgrades to BS IV
BS IV compliant machines will not only help in lowering emissions but also the maintenance cost, and along with their higher fuel-efficiency, reduce buyers' total cost of ownership.
The Indian government has imposed a strong implementation of the CEV Stage IV emission regulation, effective from April 1, 2021. On March 5, 2018, the Ministry of Road Transport and Highways released the guidelines for off-road Bharat Stage IV emission standards, recommending stringent emission limits on particulate matter (PM), nitrogen oxide (NOX), hydrocarbon (HC), and carbon monoxide (CO).
The CE Industry has been gearing up for the new emission standards, and many OEMs have already launched their new, upgraded BS IV compliant machines in the market.
However, both the sellers and the buyers are aware that the implementation of BS IV emission norms will pose certain challenges (initially) - the most marked being the higher cost inputs of the new machines, and the need to upskill the users and the service providers on the new technology. But, on the upside, the CE industry is confident that this will be a temporary phase and the market for the new machines will soon open up; once buyers understand the performance benefits of BS IV compliant machines, and their reduced cost of ownership with a good RoI, they will readily accept them.
There is no doubt, however, that the benefits of BS IV compliant machines are aplenty and far outweigh the disadvantages of higher cost, unaffordability, and the lack of skillsets for grasping the new technology. The OEMs emphasize that besides the environmental benefits, the new CEV IV engine technology will enable an extensive communication interface, facilitate more productivity, more fuel efficiency, and, thereby, more profitability for consumers.
Manufacturers, anxious that the higher price of their machines will discourage fresh sales, especially amongst first-time buyers, are ready to offer lucrative finance schemes to buyers through tie-ups with banks and NBFCs, along with extended financing tenures, AMCs, and buybacks of their existing machines. They are also organizing training programs and demos for their service team and that of their dealers and customers to apprise them of the benefits of the new technology and the value-added features in their machines.
In the meanwhile, the rental and second-hand equipment market is likely to see increased demand as the initial deterrents (high price, lack of awareness and skill) will compel many potential buyers to opt for rented or used machines over a new purchase.
India's CE Industry must also consider the possibility that by being technically at par with advanced countries, it can become a strong global contender in the field of construction - even an 'Atmanirbhar' manufacturing hub.
BS IV compliant machines will not only help in lowering emissions but also the maintenance cost, and along with their higher fuel-efficiency, reduce buyers' total cost of ownership.
The Indian government has imposed a strong implementation of the CEV Stage IV emission regulation, effective from April 1, 2021. On March 5, 2018, the Ministry of Road Transport and Highways released the guidelines for off-road Bharat Stage IV emission standards, recommending stringent emission limits on particulate matter (PM), nitrogen oxide (NOX), hydrocarbon (HC), and carbon monoxide (CO).
The CE Industry has been gearing up for the new emission standards, and many OEMs have already launched their new, upgraded BS IV compliant machines in the market.
However, both the sellers and the buyers are aware that the implementation of BS IV emission norms will pose certain challenges (initially) - the most marked being the higher cost inputs of the new machines, and the need to upskill the users and the service providers on the new technology. But, on the upside, the CE industry is confident that this will be a temporary phase and the market for the new machines will soon open up; once buyers understand the performance benefits of BS IV compliant machines, and their reduced cost of ownership with a good RoI, they will readily accept them.
There is no doubt, however, that the benefits of BS IV compliant machines are aplenty and far outweigh the disadvantages of higher cost, unaffordability, and the lack of skillsets for grasping the new technology. The OEMs emphasize that besides the environmental benefits, the new CEV IV engine technology will enable an extensive communication interface, facilitate more productivity, more fuel efficiency, and, thereby, more profitability for consumers.
Manufacturers, anxious that the higher price of their machines will discourage fresh sales, especially amongst first-time buyers, are ready to offer lucrative finance schemes to buyers through tie-ups with banks and NBFCs, along with extended financing tenures, AMCs, and buybacks of their existing machines. They are also organizing training programs and demos for their service team and that of their dealers and customers to apprise them of the benefits of the new technology and the value-added features in their machines.
In the meanwhile, the rental and second-hand equipment market is likely to see increased demand as the initial deterrents (high price, lack of awareness and skill) will compel many potential buyers to opt for rented or used machines over a new purchase.
India's CE Industry must also consider the possibility that by being technically at par with advanced countries, it can become a strong global contender in the field of construction - even an 'Atmanirbhar' manufacturing hub.