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Class Apart

By Niranjan Mudholkar,

Added 15 March 2016

Mercedes-Benz India has regained the number one position in its segment, but Roland S. Folger, its Managing Director & Chief Executive Officer, wants to go much beyond

On introduction of Bharat Stage VI engines
Folger says that Mercedes-Benz India is trying to communicate that it is part of the solution and not part of the problem by offering to bring Bharat Stage VI at an earlier date.

"We believe that to push customers into vehicles under 2 litres or to push us manufacturers into petrol is an extremely short-sighted view. Because petrol would mean that we are increasing our CO2 levels, which is not in line with what India promised at Paris. So that's an extremely short-term solution. Also, the odd-even numbers programme is not providing real relief as far as the overall air quality is concerned. We hope that we can bring some kind of logical approach to this issue."

Folger says that Mercedes-Benz India is talking to various ministries and is hoping that it can get as many people and as many manufacturers into starting Bharat Stage VI at an earlier date. "But before that we need the Ministry to convince the Oil & Gas countries to provide the Bharat Stage VI fuel." Of course, the government is happy that there are some companies who can bring Bharat Stage VI engines earlier.

"We also tried to explain it to the government that it won't be logical to expect companies to make the switch from one stage to another just like that. It won't be possible even for the fuel companies. You have to have a step-by-step approach to the issue. So, let's start small. We are a small producer and give us the gas stations that can provide us the Bharat Stage VI fuels and we can provide the landmark. And then the government can financially, by tax reduction and support, give some relief for the higher cost due to the technical changes.

"Then there will be even a stronger incentive for people to propound the introduction of Bharat Stage VI. So, in 2020 the government need not provide any tax incentives as by that time we would have enough companies to provide the critical mass to make this financially feasible for the Oil & Gas companies. But you need to do it step-by-step. You cannot make the change overnight. It is simply logistically too challenging to make a sudden shift. It won't work. Because once we shift to Bharat Stage VI, you cannot go back," he says. Strong argument that!

Producing cars which are Bharat Stage VI ready will require a big change at the manufacturing level as well. And is Mercedes Benz India is ready for that? "Yes. We have checked that. That's why we have already said that at the end of 2018, give us the fuel and give us the coverage.  Covering India in parts is not good because then there will be mixing and that will not be good. So give us coverage and we will be ready in 2018," he states.

There was also some talk about retrofitting the vehicles. Folger summarily dismisses the idea. "It is a misconception that you can retrofit and upgrade Bharat Stage IV vehicles into Bharat Stage VI vehicles. That is even more expensive! I don't think that anybody will be able to do that. The assumption is that on April 1, 2020, there would be only Bharat Stage VI vehicles available in the country. That won't work. It did not work in Europe, and I don't see any logical reason why it will work in India.

"I understand that it will be a significant challenge for the mass car market and I can sympathise with that. May be luxury car makers can do it first and help in that transition. We have the technology readily available and we would be able to do it full-fledged by 2018. We can use the two years between 2018 and 2020 as the sliding in years. The focus must be on customers.

(Continued on the next page)