Tata Motors could abandon small diesel cars from the wallet

According to a company official, Tata Motors could phase out small diesel cars from its portfolio. Demand is expected to slow due to future BS-VI emission standards that would make these vehicles expensive.

Maruti Suzuki India (MSI), the market leader, has already announced its intention to discontinue diesel models as of April 1, 2020, when BS-VI standards come into effect as it expects that the Cost increases place most diesel cars, especially those that are out of reach of small car buyers.

Tata Motors is currently selling its entry-level Tiago sedan with a 1-liter diesel engine, the Tigor compact sedan with 1.05-liter powertrain, and older models like Bolt and Zest with a 1.3-liter diesel engine .

"We believe that the low demand for diesel models of entry and average size will not justify the high costs badociated with developing a new small-capacity engine," said Mayank Pareek, Vehicle Business Unit tourism, to pbadenger vehicles.

In addition, about 80% of the demand in this segment relates to variants of gasoline and the additional investment required therefore does not seem viable, he added.

The company's other products, such as the Nexon compact SUV and the recently launched Harrier SUV, are equipped with 1.5-liter and 2-liter powertrains, respectively, and are expected to rise to a new level.

The company buys the 2 liter diesel engine for Harrier from Fiat.

Pareek said the introduction of BS-VI engines would make compliance costly, especially for small diesel cars.

"Since these high costs will ultimately be pbaded on to the end customer, the sale of diesel vehicles will logically lead to a decline in the industry," he added.

While diesel cars will become more expensive starting next year with the implementation of stricter BS-VI emission standards, major automakers are questioning about the future. of these vehicles in their portfolios.

Earlier this month, MSI announced the phasing out of diesel cars from its portfolio as of April 1, 2020, which would coincide with the shift of the auto industry to more stringent standards in terms of BS VI issues.

On the other hand, Ford said it would continue to sell diesel models in the country. The automaker, which sells models like EcoSport and Endeavor, said it would be ready with BS VI-compliant diesel powertrains for its model lineup before the April 1, 2020 deadline.

The Bharat Stage VI (or BS-VI) emissions standard would come into effect as of April 1, 2020 throughout the country. Currently, vehicles sold in the country comply with BS IV emission standards.

Stage Bharat emission standards are government-issued standards for regulating air pollutant emissions from motor vehicles. PTI MSS MR MR