Tata Motors ready tech fix for emissions in trucks

Tata Motors believes the new fiscal represents a new period for its commercial vehicle business after a “tumultuous” 2016-17.

The year also marks the rollout of the BS-IV regime across the country before it jumps directly to the even more stringent BS-VI emission norms in April 2020.

As part of the clean-up exercise, Tata Motors is ready with its SCR (selective catalytic reduction) and EGR (exhaust gas recirculation) technologies. The latter can reduce nitrogen oxide emissions in small to medium commercial vehicles and has been around since 2010 when BS-IV was first launched in a few cities. As for SCR, which debuted in 2014, it is best suited for 130 hp to 400 hp trucks and can be scaled up to meet BS-VI norms too.

At a press conference here on Wednesday, Ravindra Pisharody, Executive Director (Commercial Vehicles), said the need of the hour was to build the company’s competitive position in the CV market with these technologies.

“We are ready for the big jump and the key is to focus on cost of ownership through better fuel economy and higher resale value,” he added.

There will be some cost implications in the process which could even be up to 10 per cent though a part of this will be absorbed by the company. Pisharody also expected the April-June quarter to be “slow” though growth is likely to pick up subsequently with the Goods and Services Tax regime in place by July.

Looking back at the year that went by, he said there were a lot of ups and downs in the medium/heavy duty space. While the demonetisation shocker of November crippled key markets in the North and West, the SC judgment in end-March resulted in unsold BS-III stocks which now need to be liquidated.

Tata Motors is confident that over half these stocks, comprising lighter trucks like the Ace, can be shipped to neighbouring countriesa. Of the balance 6,000-odd units, which include medium and heavy duty trucks, some can be upgraded to BS-IV so long as this remains a cost-effective option.

In addition, some relief could be expected from the review petition that the Society of Indian Automobile Manufacturers plans to file with the Supreme Court.

This will seek some kind of solution to unsold BS-III stocks in the auto industry. It remains to be seen if the SC will accede to this request in the background of its judgment on March 29 where it stated that registration of BS-III vehicles would cease from April 1.

The tighter emissions regime in India could help Tata Motors increase its share of exports from the present level of 18 per cent.

A host of countries in the Asia-Pacific region are also transiting to cleaner air norms. Australia is a case in point where an upgraded Tata Xenon pick-up will be shipped out from India in 2018.

Demand for pick-ups is expected to increase across the ASEAN region and the company is gearing up for a healthy export order book in the coming years.