Maruti Suzuki, which is India’s largest carmaker by market share (51% by the end of FY 2018), recently announced it would stop selling diesel cars in the country by the end of FY 2019.
“From April 1, 2020, we will have no diesel car on sale. Depending on how customers react, if we find there is a market for diesel cars, we will develop it in a reasonable amount of time,” said R C Bhargava chairman of Maruti Suzuki, in an article by Quartz India.
The move comes following India’s decision to curb vehicular pollution by setting far stricter emission standards – Bharat Stage VI (BS-VI) in 2020 – from the current Bharat Stage IV (BS-IV). The Bharat Stage standards are based on European regulations, and were first introduced in 2000.
The switch from BS IV to BS VI was first announced in 2016, following India’s signing of the Paris Climate Agreement, which will come into effect in 2020. According to the 2018 World Air Quality Report by IQAir AirVisual, 22 of world’s 30 most polluted cities are in India.
At the time, the Indian automotive industry opposed the move, citing an increase in vehicle pricing to ensure their vehicles complied with the BS-VI standard, which is similar to Euro 6 regulations.
“An estimated increase of one lakh rupees (one hundred thousand rupees or RM5,981) for diesel cars and 20,000 rupees (RM1,196) for petrol cars is expected with the switch to BS-VI,” said Bhargava. This will certainly have an impact on the price sensitive buyers in the country.
Maruti Suzuki currently offers diesel versions for seven of its models, including the Swift, Dzire, Vitara Brezza, Baleno, Ertiga, Ciaz and S-Cross. It also offers variants for some of these models that are powered by compressed natural gas (CNG), a fuel type that the Indian government is promoting.
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