Automotive sector heading towards tough but good “Eco-friendly Way”.

Image Source: Owned By Vauxford. Licensed under the creative commons

The Update

From April 2020, the Maruti Suzuki will eliminate all of its diesel cars to comply with strict BS –VI emission norms ( To be implemented from 1st April 2020).  It means Swift, Dzire, Vitara Brezza and Baleno which are powered by Fiat’s 1.3-litre Multijet engine and the newly-launched Ciaz diesel powered by 1.5-litre DDIS 225 engine may not be available from April 2020.

How the decision will affect the Company?

Diesel cars constitute around 25% of total sales of Maruti Suzuki as the company is selling around 5.5 Lakh units every year. And now the company will concentrate on petrol,  CNG or hybrid models. However, the company may develop a new engine having more than 1.5 liters capacity  in the future and will continue to analyze the market after BS – VI implementation

And how it will affect the Automotive Industry?

Maruti is a leading player in the automotive sector, therefore, removal of its diesel car segment will slow down the industry as a whole. The diesel engine which complies with BS-VI standard may cost 2 to 2.25 lakh more than petrol variant, therefore customer may be inclined to buy petrol variant only

What do you think?

The Starterr

Written by The Starterr

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