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Major headwinds unlikely for tractor industry

05/03/2020 | Author: Autoguide | 0 Comments Back To Home   < Previous News   |   Next news >

Bharat TREM-IV norms

ICRA Ratings has said that the proposed Bharat TREM-IV emission norms for the domestic tractor industry which will come into force from October 2020 onwards are unlikely to create major headwinds for the sector. 
 
This is because the new emission norms will only be applicable for tractors with capacity above 50HP, which accounts for only 13 per cent of industry sales (in unit terms). The rest of the industry (i.e. tractors below 50HP) will migrate to the new norms only from October 2023. 
 
The evolution to new norms is   in line with the broader automobile industry in India, which will be migrating to Bharat State (BS-VI) emission norms from April 2020.  
 
Giving more insights, Mr. Rohan Gupta, AVP, Corporate Sector Ratings, ICRA Ltd, said, “While major technological changes (including both engine and after-treatment technologies) are required to migrate to the proposed norms, the technological know is readily available with OEMs, given that tractors exported to various countries are already meeting the evolved emission norms guidelines. However, the pass through of the incremental cost (related to the technological changes) to the farmers is likely to prove to be a challenge, given the price sensitive nature of the farming community.” 
 
The tractor industry (across all HP categories) in India currently complies with TREM-IIIA emission norms which were implemented back in April 2010 and April 2011 in a phased-wise manner. However, emission regulations in developed countries such as Europe and USA and many other key markets have progressed through a series for stringent stages over the past decade and are currently significantly stringent than those applicable in India.
 

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