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Fuel-Efficient Engines In A Cost-Sensitive Market
Auto Components India
|August 2025
India's auto industry is racing to balance rising fuel prices, the rapid rollout of E20 ethanol-blended petrol, and strict BS-VI emission norms, all while keeping vehicles affordable and competitive in global markets

Leading engine manufacturers, both homegrown and multinational, are engineering solutions that combine fuel efficiency, emission compliance, and cost control. From compact cars to Heavy-Duty Commercial Vehicles (CVs), Indian plants are producing engines tuned for local conditions and price-sensitive buyers, with many exported to equally demanding overseas markets. The accelerated rollout of BS-VI norms forced OEMs to achieve in just three years what Europe accomplished In nine, introducing DPFs, SCR systems, OBD-II diagnostics, high-pressure fuel injection, turbocharging, and advanced ECU management.
Daimler India Commercial Vehicles (DICV) took a bold localisation route. Instead of continuing with Mercedes' global OM900 and OM470 series, it opted for Cummins-supplied BS-VI engines for its BharatBenz range. The rationale was to better torque delivery for Indian duty cycles, easier local sourcing, and lower the cost per km for fleet operators. This decision was backed by Rs.. 500 crore of investment, over 1,000 localised components, and two million kilometres of durability testing.
VE Commercial Vehicles used its Euro VI experience to optimise Indian BS-VI platforms for powertrain efficiency, achieving competitive fuel consumption and uptime rates. Cummins India secured BS-VI OBD-II certification for its B5.6 and B6.7 engines, integrating SCR and DPF systems to achieve cleaner combustion without compromising performance. Over 220,000 Cummins BS-VI engines are already on Indian roads.

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