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Maruti Suzuki has hinted that they might halt production of diesel engines once BS-VI emission norms come into effect. The company states that the development cost of BS-VI compliant diesel engines would be too high, compared to their petrol counterparts.
According to ET Auto, Maruti Suzuki might halt its diesel engine assembly plant in Gurgaon. Suzuki might then convert the line to assemble petrol engines or just open up an additional assembly line in its Manesar plant.
The decision of stopping the production of diesel engines is due to its fading demand in the market. Maruti will shift its focus towards, CNG, petrol and electric vehicles for the future.
Currently, Maruti's Gurgaon plant assembles the 1.3-litre DDiS engine. It is used in some of the most popular product offerings such as the Baleno, Ertiga and the Vitara Brezza. The plant also manufactures the in-house developed 800cc diesel engine, powering the Super Carry LCV.
The plant currently has a production capacity of 170,000 units per annum. Maruti did, however, state that it would replace the older 1.3-litre diesel unit with the 1.5-litre engine which will serve the demand in the medium term.
The new Bharat-Stage 6 (BS-VI) emission norms will come into effect from the 1st April 2020. Once the norm has been implemented the price difference between BS-VI compliant petrol and diesel engines might rise significantly. The difference in price would be over Rs 2 to 2.5 lakh, which would directly affect the sales of diesel-powered cars.
Thoughts On Maruti Stopping Diesel Engine Production
Currently, the difference between a diesel and petrol powered car is around Rs 1 lakh. This price difference is easily made up over the course of a year, considering the fuel prices and other factors. However, with the implementation of the BS-VI norms, the prices would double, affecting the overall sales.