Big automobile companies in India are rethinking their budget car strategies in India, thanks to the new BS VI emissions norms impending move in 2020. Several court orders and government regulations are making life difficult for the diesel model cars in India. This has effectively changed the strategies by Maruti Suzuki, Toyota, Tata and Honda.
Maruti mull over the decision to stop the diesel version of its 800cc car, celerio, while Toyota has decided not to fit the 1.5l GDI diesel engine in its Vios sedan that is about to arrive in India. Honda Motors has also dropped the idea of coming up with a budget car with a three cylinder 1.2l engine in India. The second home-grower to halt plans is Tata Motors who has put its 1.6 and 1.2-litre diesel engine car plans on hold.
None of these companies have made any statements or press responses in this matter. Before the government scrapped its subsidy on diesel cars, all the mentioned companies were fighting tooth and nail to increase their number of diesel, mostly because the Indian crowd looks for an economical car. The subsidy made diesel cars cost less than petrol ones, as far is fuel consumption is concerned.
Recently a ban was placed on large diesel passenger vehicles, but the government has temporarily lifted it saying that special environmental levy must be paid to use them in the NCR.
These steps are being taken by the government to reduce the country’s carbon footprints. N. Raja Senior VP of sales and marketing said that as long there are no alternatives like hybrid technology, there will always be a need for diesel engines.
On a similar note, Toyota is planning to bring in it Corolla Altis into the country. This has the potential to change the industry dynamics drastically.
Hybrid technology has been viewed in India mainly as a thing of the west. With the likes of Elon Musk’s Tesla making innovation in leaps and bounds, India is still starting off with electric two-wheelers.
With the amount of industrial and technological developments taking place in India, a lot of the government’s focus has also been on making efforts to reduce the adverse environmental effects. This is one such example. The future of the automobile industry is truly moving towards electric vehicles.
