BS VI emission norms dilemma: Why Maruti is forced to discontinue diesel cars

Diesel cars currently make up 23 per cent of Maruti's total sales in the domestic market. Maruti sold more than 4.5 lakh diesel vehicles in last fiscal.

India's largest carmaker Maruti Suzuki India (MSI) will discontinue the sale of diesel cars in the country from April 2020, which coincides with the transition of the automobile industry to stricter BS VI emission norms.

Diesel cars currently make up 23 per cent of Maruti's total sales in the domestic market. Maruti sold more than 4.5 lakh diesel vehicles in last fiscal.

India will skip the BS V emissions norms and transition to BS VI norms from next April. These norms are expected to impact the automobile industry, barring the tractors.

The BS VI norms will lead to the addition of both non-casted components and more electricals/sensors and changes in electronic control units, which will push up prices across vehicle segments. Small diesel cars would see the maximum impact in terms of pricing with the coming of BS VI compliant engines.

Some of Maruti's cars like Vitara Brezza and S-Cross currently come with a diesel engine option only. Others like Swift, Baleno, Dzire, Ciaz and Ertiga also have petrol versions in addition to the diesel trims. MSI has also decided to pull the plug on the diesel version of its light commercial vehicle Super Carry from next year. It would be only available in petrol/CNG version going ahead.

Maruti diesel cars may stage a comeback

"From April 1, 2020, we will not be selling diesel cars," MSI Chairman RC Bhargava told reporters here when asked to comment on the company's plans regarding the diesel vehicles. He, however, added that if there is a demand for BS VI diesel cars the company might go ahead and develop a model to cater to that demand.

"From April 1, 2020, we will have no diesel car on sale. Depending on how customers react to BS VI diesel cars if we find there is a market of BS VI diesel cars we will develop such a car within a reasonable period of time," Bhargava said. The company recently launched its mid-sized sedan Ciaz with in-house developed BS IV compliant 1,500 cc diesel engine. Its other cars are powered by 1.3-litre diesel engine sourced from Fiat.

Bhargava said the company would not go below 1,500 cc diesel engine going ahead. "The only area which looks in our range of products possible is somewhere around 1,500 cc engine. So if we come back in diesel it will be that range and not lower than that because the price difference factor will make that model unaffordable," he added.