Maruti Suzuki is likely to close its diesel engine assembly line at its Gurugram plant as it speculates a drastic drop in demand for oil-burners post-BS-VI.
In a move which clearly indicates the future of diesel vehicles in India, Maruti Suzuki reportedly plans to shut down its diesel vehicle assembly line at its Gururgram plant. Country’s largest automobile manufacturer currently assembles a Fiat-sourced 1.3-litre diesel engine at its two Haryana facilities. This engine is used across its portfolio in the diesel derivatives of Baleno, Vitara Brezza, Swift and Ciaz.
According to a report published in LiveMint, Maruti Suzuki believes that its diesel vehicle assembly line will be enough to cater to the future demand for diesel vehicles in its portfolio. With BS-VI emission norms coming in effect in 2020, prices for diesel vehicle will go up significantly. Hence, impacting the demand for diesel-driven vehicles considerably and tilting it in favour of petrol and CNG driven vehicles.
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According to Society of Indian Automobile Manufacturers, during the period between the financial year 2014-15 to 2018-19, the market share for diesel vehicles in India fell from 50% to 40%. In comparison, during the same period, the market share for petrol cars rose from 47% to 60%. It is not just petrol but cars running on alternative fuel like CNG have also seen a massive rise in demand recently. For the financial year 2018, Maruti Suzuki alone observed an increase in demand for its CNG driven vehicles by 50%.
Also Read: Maruti Baleno Facelift In Works: Launch Likely By First Quarter of 2019
Maruti Suzuki’s parent company Suzuki is currently working in partnership with Toyota for sharing technology and expertise for the development of hybrid and electric vehicles. Suzuki has already commenced working on a full-hybrid vehicle for the Indian market and for this, it has proposed an investment of $1.4 billion in the research and development. Maruti Suzuki has already started testing its prototype for a mass-market all-electric car in India which is based on the global spec Suzuki Wagon R.
