Maruti-Suzuki Plans To Make Comeback In Diesel Segment Next Year As Demand Fumes

According to sources, the company has planned to roll out BS-VI diesel engines starting middle or festive season next year for which it has started the process to upgrade its Manesar-based powertrain plant. The carmaker is planning to utilize the BS-VI compliant diesel powertrain in the Ertiga and Vitara Brezza to start with in the domestic market.

(Representative Image/ Getty)

New Delhi: As the diesel-powered vehicles in the segment of Sports Utility Vehicles (SUV) and Multi-Purpose Vehicles (MPV) continue to draw a major chunk of customers in the domestic market, India’s largest carmaker Maruti Suzuki India (MSI) is looking to re-enter the diesel segment, industry sources reported. The carmaker with the onset of stricter BS-VI emission norms discontinued diesel models from its portfolio from April earlier this year.  According to sources, the company has planned to roll out BS-VI diesel engines starting in the middle or the festive season of next year for which it has started the process to upgrade its Manesar-based powertrain plant. The carmaker is planning to utilize the BS-VI compliant diesel powertrain in the Ertiga and Vitara Brezza to start within the domestic market. As per sources, the largest carmaker is looking to upgrade the current set up at the Manesar plant, which earlier used to churn out its in-house developed BS-IV compliant 1,500-cc diesel engine. Before MSI decided to exit the diesel segment the engine was used in its mid-sized sedan Ciaz and MPV Ertiga. Meanwhile, other models like Vitara Brezza, Dzire, Swift, S-Cross, and Baleno at that time used to be powered by the Fiat-sourced 1,300-cc diesel unit. Currently, the whole range of MSI vehicles is powered by BS-VI compliant 1.0 litre, 1.2 litre and 1.5 litre petrol engines. MSI Chairman RC Bhargava on April 26, 2019, announced that that the company will phase out all diesel cars from its portfolio with effect from April 1, 2020. Citing the reason that small diesel cars would become costlier with the coming BS-VI compliant engines. Bhargava further added that if there is a demand for BS-VI diesel cars the company might go ahead and cater to that demand. "Depending on how customers react to BS-VI diesel cars if we find there is a market of BS-VI diesel cars, we will develop such a car within a reasonable period of time," Bhargava said in April. Shashank Srivastava MSI’s Executive Director Sales and Marketing, in July, hinted that the company may look at having a bigger BS-VI diesel engine at a later stage if there were enough customers for diesel-powered big SUVs and sedans. "Those customers who do not care about economics for running the car may still be buying the diesel cars and for that, the company has said it is watching the market very closely," Srivastava had said. MSI gained around 23 per cent of the total revenue from the sales of diesel trims in the domestic market. Post-discontinuation the carmaker planned to fill the gap with cars powered by alternative fuel options like CNG. Companies like Tata Motors and Toyota Kirloskar Motor discontinued small capacity diesel engines while continuing with bigger powertrains in their multi-purpose vehicles and SUVs after MSI’s move of discontinuing the range of diesel cars.