Covid-19: OEMs could be forced to reduce BS6 vehicle prices04/03/2020
According to a media report, the Covid-19 pandemic and the resulting economic slowdown might force carmakers to reduce prices of BS6 vehicles closer to the BS4 models.
The BS6 emission norms came into effect from April 1, 2020. Upgrading the engines to meet the more stringent regulations meant, carmakers had to make huge investments. Therefore, a price hike was inevitable.
However, brands like Toyota, which started selling BS6-compliant cars from January onwards decided not to pass on the entire BS6 price increase to customers.
Further, Mahindra and Tata Motors are likely to give incentives on BS6 models to push sales once the lockdown is lifted.
The report suggests that 2-wheeler makers are likely to take a decision on price revision depending on how the situation evolves in the future.
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