End of road for diesel cars: Maruti Suzuki
India’s largest carmaker, Maruti Suzuki India Limited (MSIL), announced termination of its diesel cars with effect from April 1, 2020. The fresh BS VI fuel economy norms will be effective from April which will make diesel vehicles costlier.
This would make a clear dent in the pockets of those using small cars with the engine size less than 1.5 litre, said a report issued by the MSIL. The company has however, not ruled out chances if there are any takers for the last week’s launch even after the price boom in 2020. It may be noted that Maruti has sold about four lakh diesel vehicles in the last financial year.
Presently, diesel powered vehicles comprise up to 23 per cent of the total domestic sales and is offering eight diesel variants of Swift, Vitara Brezza, Dzire, Ertiga, Ciaz, Baleno and S-Cross. Also, the chances of survival of recently developed 1.5 litre indigenously developed diesel engine on its mid-size sedan Ciaz (DDiD 225) engine also hangs on the demand for diesel cars in the coming days. However, the company continues to stay in the soft lane due to multiple macro challenges.
According to reports, for Maruti, the share of diesel has reduced from 45 per cent to 23 per cent in fiscal 2019 and the introduction of BS VI will only add to its problems and thus, increase the cost of a diesel engine significantly by Rs 80,000-2,00,000.