Maruti feels it will lose a sizeable market share if it vacates this space to rivals
Auto major Maruti Suzuki India is having second thoughts on removing diesel vehicles from its portfolio, reported The Economic Times. The rethink is driven by the decision of its competitors -- Mahindra & Mahindra (M&M), Tata Motors, Hyundai Motor India and Honda Cars -- to continue in this segment, the publication quoted sources as saying.
Ahead of the rollout of Bharat Stage-VI norms from April 1, 2020, Maruti has officially confirmed that it will discontinue the diesel engines in its line-up due to the high costs of upgrading them to meet the new emission norms. Over the past few months, it has phased out its diesel models, except for the BS-IV versions of the Vitara Brezza and the DZire Tour.
On November 22, Shashank Srivastava, Executive Director (Marketing) - Maruti, clarified that the company would not manufacture small diesel vehicles of the BS-VI standard but would reconsider if the market remained trendy. A few days later, on December 1, a diesel BS-VI variant of the Ertiga was spotted being tested on Indian roads.
As per the report, the management now feels it will lose a sizeable market share if it vacates this space to rivals. ET sources said Maruti might stop selling diesel cars ahead of the April 1 deadline but might re-enter the market in 2021.
Moneycontrol could not independently verify the report.The New Delhi-based company is reportedly working on a 1.5-litre, BS-VI compliant diesel engine. Diesel variants of this engine will power the Ciaz, Ertiga, S Cross, Vitara Brezza and a seven-seater version of the SUV, sources told the paper, but added that the move will happen in stages. “In case of the Swift, Baleno and DZire, it would offer a CNG or hybrid engine as an additional option to buyers along with petrol, as there would be no diesel variants,” the sources stated.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.