the slowdown in the auto sector will impact the index of industrial production iip as it accounts for nearly half of the countrys manufacturing for india inc 2019 was a year of slowdown in economic activity the widespread sluggishness reflected in lower capital investments bank credit corporate profits and consumer and industrial demand several large corporate groups also ran huge debts adding to their woesin this backdrop it is imperative that businesses adjust their sails in the coming year to meet various regulatory challengesthese are expected to affect operating costs profitability and return ratios for some companies while for others financial reporting would change significantly etig offers a quick roundup on what headwinds industries can expect in 2020 the auto sector faced the most protracted slowdown of the past two decades in 2019 and it is likely to face more challenges in 2020 amid a transition to new emission norms that come into effect from april 1 advt in october 2018 the supreme court ordered automobile manufacturers to migrate to the bsvi emission norms which are more stringent in terms of the sulphur content of fuels and the emission of particulate matter pmthe ruling directly affects automotive companies which need to invest in the production of compatible engines as well as oil refining companies which need to upgrade their infrastructure to meet the bsvi guidelinespublic sector oil companies and auto manufacturers need to invest rs28700 crore and rs50000 crore respectively towards technological upgrades according to a note published by the india chapter of the belgiumbased international association of public transportthe shift to bsvi is likely to raise vehicle prices by 415 with rates of dieselpowered vehicles expected to see a substantial jump this will create a double whammy for vehicle makers as rising prices amid weak demand will increase cost of ownership according to industry trackers rising cost of ownership has been one reason why sales volume in the personal commuting segment fell in 2019higher insurance costs surging road taxes in states and new safety features resulted in a 1218 increase in vehicle prices over the past 18 monthstwowheeler and commercial vehicle makers have not yet launched their bsvi offerings on a large scale however maruti suzuki the countrys largest passenger vehicle maker has launched bsvi variants of eight models that constitute about 70 of its total volume advt barring the passenger vehicles segment the street expects reduction in sales volume to continue even in 2020 the slowdown in the auto sector will impact the index of industrial production iip as it accounts for nearly half of the countrys manufacturing the steep rise in registration charges for vehicles that use internal combustion engines ice is another headwind read alsobuying a bsvi car next year get ready to shell out more a draft notification by the ministry of road transport and highways has proposed to increase the registration charges to rs5000 from rs600 at present renewal of registration charges for icerun cars is proposed at rs15000apart from the effect of bsvi