KYB-Conmat - Sailaj Verma, Senior VP
Transition to the new emission norms will be a big challenge both for the manufacturers due to increased technological costs and for users due to high maintenance and running costs; but it is the need of the hour

The benefits of BS IV compliant equipment must be conveyed to buyers by giving them the right perspective.
While the Bharat Stage IV emission norms will help in bringing down pollution levels, it will invariably result in increased vehicle cost due to the improved technology and higher fuel prices. However in broader perspective, this increase in cost will be offset by savings in health costs for the public, as there will be a lesser amount of disease-causing particulate matter and pollution in the air; exposure to air pollution can lead to respiratory and cardiovascular diseases. Hence, most of our customers are open to these changes, which are benefiting the whole world - provided it is conveyed to them in the right manner.

KYB-Conmat

The cost of technology and the current steep increase in raw materials and manufacturing costs is bound to impact the overall cost of the equipment.
For buyers, generating the extra cash flow, especially in these difficult times, will be a major challenge taking into account of the increase in cost. Though there will be an initial financial setback for buyers, in the long term, the market will become aligned with these new normal.

Another challenge that the buyers and users will face is the availability of clean fuel to meet the new BS IV and BS VI engine requirements in remote locations and at project sites.

To support our new technologically advanced products, we are constantly upgrading the skills of our service team through advanced trainings and are offering AMCs to customers. We are also offering a buyback option for our machines and even finance schemes in select markets, through our channel partners.

The price hike is likely to expand the rental/second-hand equipment market in the short-term.
In the medium-term, affordability, operational and maintenance expertise with respect to the new technology products will pose a major challenge to the buyers, especially in the smaller customer groups with a lesser number of machines. This will create a demand for rental and used equipment in the short-term. In the long-term, customers will eventually upgrade to the new technologically advanced machines despite the new price levels.
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