Maruti Suzuki, along with several other manufacturers were seen to have been riding the wave of popularity. Indian customers all of a sudden took to liking diesel powered engines. Several automobile manufacturers started providing smaller vehicles with diesel powered engines.
These smaller diesel engines are expensive to develop and are now witnessing a slump. Maruti Suzuki is planning to discontinue its Celerio with diesel engine owing to sales. The Alto K10 was supposed to be equipped with a diesel engine, however, the plan seems to be shelved as of now.
Honda India has been studying the possibility of a 1.2-litre three-cylinder diesel engine. This diesel engine would power a small car, however, Honda seems to have put the plan on hold.
Tata Motors who is popularly known for its diesel engines has also shelved plans for smaller engines. A 1.6-litre and 1.2-litre diesel engine from Tata Motors have been put on hold. The trend towards diesel engine in India is changing constantly.
The Indian Government plans on fast-tracking the introduction of BS VI emissions norms. Redevelopment of the diesel engines would cost automobile manufacturers even more money. Thus, automobile manufacturers do not want to further work on smaller diesel engines in India.