Maruti Suzuki: Discontinuing Diesel Cars from 2020

After the Indian government decided to implement the BS-VI norms for pollution control skipping the stage 5 norms, Maruti Suzuki decided to discontinue sale of diesel cars although one of its latest car models Vitara Brezza is only available in diesel, even the sedan ciaz is available in diesel variants only. The stage six norms are more onerous to meet. The cost for producing the vehicles up to the BS-VI norms won’t be viable. It will make the cars much ore costlier. The bharat stage-VI norms will commence from 1 April 2020 and the diesel cars will be discontinued from the same date. Maruti Suzuki is one of the two automakers who will be impacted most by BS-VI norms, the other one being Hero Motorcorp Ltd.

The diesel variants of ciaz, dzire, swift, baleno, ertiga, s-cross and vitara brezza will be discontinued from April 2020, even the latest model of ciaz which was launched in March 2019 will meet its end. Although is demand is viable Maruti will consider a new BS-6 engine in diesel which will be 1.5l or bigger. The cars with only diesel variants available are not likely to be discontinued like s-cross and brezza. A new BS-6 engine would be introduced for them. This decision will be based on customer demand.

What is the bharat stage-VI (BS-VI)?

Bharat stage emission standards are regulatory norms for emissions from vehicles. The higher the stage is the more stringent norms are. The existing norms of bharat stage-IV (BS-IV) are extremely divergent in comparison to BS-VI norms for pollution control as the central government decided to skip on stage five due to need of the hour. According to BS-VI rules and regulations the fuel should contain only 10 parts per million (ppm) sulphur which is a deep dive from 50 ppm as per BS-IV regulations. An on board diagnostics will become mandatory for all cars and two-wheelers which aids in identifying malfunctioning units. This helps the vehicle to run at optimum efficiency throughout life.

How does this affect automobile companies?

Automobile manufacturers will face a second drastic hit. Most vehicles being used today follow stage III norms; the time given to make vehicles according to requirement of stage IV norms was April 2017. Many manufacturers are still recovering from it and the new guidelines will make it even more grueling for automobile manufacturers. A lot of stock of cars is stuck since they are BS-III & IV models.  The apex court of the country: Supreme Court declared that won’t be permitted to register BS-IV complaint vehicles after March 2020, creating an even more baffling paradox for automakers since ministry of road transport and highways said they will get 3 months to exhaust their stock.

What is the environmental implication?

India’s pollution levels are soaring higher than the population. The number of cars on road is increasing by colossal numbers daily causing more pollution. 11 out of 12 cities in world with highest level of pollution are in India. This is one of the reasons why the central government decided to skip stage V and jumped to stage VI.  Although it might not be in the best interests of automakers and will definitely create many hurdles but is deemed absolutely necessary for controlling emissions of harmful gases.

How does this concern you as a buyer?

Not all companies are discontinuing diesel cars but it will inevitably increase the prices of diesel cars manifold. The price for petrol cars will also hike but it would be nothing compared to diesel variants.  The automobile market has seen a drop in its overall sale in last year. India also needs to produce more cleaner and efficient fuels. Upgrading norms for emission won’t make the cut to step up our game globally. 

Diesel cars already cost more than petrol variants and the lower life of vehicle in Delhi NCR (10 years) makes it non-viable while trying to sell your used car. Automakers have tried to reduce the price gap between petrol and diesel variants but still more consumers are moving towards petrol variants.