Maruti Suzuki India Limited (previously Maruti Udyog Limited) commanded a 53% share of the Indian passenger car market in July 2018. On April 25, 2019 it announced it was abandoning its diesel offerings in favor of electric. However this was not necessarily a high-minded gesture. The real driver was probably the Bharat Stage VI emission standards effective April 1, 2020.
How the Bharat Emission Standards Affect Maruti Suzuki
The new regulations imply a large capital investment from Maruti Suzuki if it were to continue making diesel cars. Moreover, the Petroleum Ministry of India has brought implementation forward in view of heavy air pollution stifling Delhi and other cities.
The regulation targets two-stroke engines for 2-wheelers, and diesel cars such as the Maruti 800. Generations of this model have sold well for over 30 years. In fact, the current Suzuki Maruti outsells all other cars in India with the exception of the Hindustan Ambassador. Dataquest India reports this has ruffled more than few feathers on social media.
The State of the Debate about Bharat Stage VI
As we might expect opinions divide sharply. Most fret about the increasing cost of petrol, while others welcome the environmentally friendly policy. Some go as far as welcoming the advent of electric vehicles which have not been especially popular in India until now.
However notwithstanding this Maruti Suzuki may face an uphill struggle to retain its traditional market, depending how its competition responds. Some consumers welcome the reduced pollution and the relative ease of manufacture. However, others shake their heads as they point to shorter driving ranges, and insufficient fast charging stations.
They are also worried about the cost of eventually replacing the battery at half the price of the vehicle. Perhaps India should have introduced Bharat Stage VI in large cities first, where the emission reduction is more urgently needed.
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Preview Image: Maruti 800’s Face to Face