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LATEST NEWS UPDATES | Steering away from diesel: What is the trend against this heavy polluter fuel in India? -G Ananthakrishnan

Steering away from diesel: What is the trend against this heavy polluter fuel in India? -G Ananthakrishnan

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published Published on May 5, 2019   modified Modified on May 5, 2019
-The Hindu

Leading passenger vehicle markets such as the European Union are opting for other fuels.

The story so far: On April 25, Maruti Suzuki, India’s top carmaker, announced that it would phase out production of diesel models from April 1, 2020, when stricter Bharat Stage VI emission standards come into force. What does this mean for the auto industry?

Why did Maruti take this decision?

Explaining its rationale, the leading passenger vehicle manufacturer said the enhanced emission standards would make diesel engines costlier by up to ?1.5 lakh, and the acquisition cost of diesel vehicles for consumers would be markedly higher than petrol equivalents. Given the market dynamics, it would not make business sense for the company to invest in developing new diesel engines to meet the BS VI norms. Compressed Natural Gas could be a replacement for both fuels, according to Maruti.

Diesel cars account for about 23% of Maruti’s domestic sales and it sold a total of 4.63 lakh diesel-powered vehicles during 2018-19.

On the consumer side, diesel vehicles are not particularly attractive today. The traditional advantage of lower operating costs due to a wide gap between expensive petrol and lower cost diesel has narrowed significantly. On Saturday, the price of diesel in a city like Chennai was Rs.70.48 per litre compared to Rs.75.92 per litre for petrol.

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The Hindu, 5 May, 2019, https://www.thehindu.com/business/Industry/steering-away-from-diesel/article27035520.ece?homepage=true


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