Maruti Suzuki, India’s largest carmaker, will stop selling diesel vehicles in the domestic market on 31st March 2020, a day before the Bharat Stage VI (BSVI) emission norm comes into force. This was stated by the company's chairman R C Bhargava today. But the journey for Maruti Suzuki in the diesel segment may restart, provided a fair number of customers prefer diesel and at a price which will include the BS VI technology cost impact.
"It (presence in diesel segment) will depend of customer acceptability. It will be the customer's choice, not the OEM's choice," Bhargava tells Autocar Professional. Currently all but one of Maruti Suzuki's diesel variants are powered by a 1.3-litre diesel engine manufactured under licence from Fiat Chrysler. It had launched an in-house-developed 1.5-litre diesel engine in the premium Ciaz sedan on March 28. This engine will make a comeback in the BS VI era if customers give a thumbs up to its cleaner but costlier BS VI version.
In FY2018-19, all diesel variants of Maruti Suzuki models together contributed close to a fourth of the OEM's total sales. For the industry, it would be a little more. Wouldn't it be a risk to fully exit the diesel segment? Bhargava doesn't think so. He says, "Eight years ago, we (Maruti Suzuki) were a petrol-only carmaker. The market shift towards diesel forced us to enter the diesel segment."
Now the reverse global trend and the technology cost impact affecting affordability in the mainstream market don't make a compelling reason to play in the diesel segment. However, Maruti Suzuki will export diesel vehicles in markets which follow emission norms that are BS IV equivalent or below. "We will export to markets where there are no legal hurdles," says Bhargava.
Super Carry only in diesel and petrol from April 2020
In the commercial vehicle space, the story is similar for Maruti Suzuki. Bhargava confirmed that his company's sole commercial vehicle – the Super Carry – will cease to be run by diesel. From April 1, 2020, the small truck will be available only in CNG and petrol versions.
Along with all these BS VI-related developments, Maruti Suzuki is also busy preparing its electric mobility strategy. Its first electric vehicle is slated to hit the roads next year.