BS-VI Emission Norm Could Strangle Diesel Vehicle Sales

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Diesel vehicle in India are expected to become pricier due to BS-VI emission norm; new regulation coming into effect in April 2020

An anti-diesel vibe has been troubling the auto manufacturers in India for quite some time. While the large SUV buyers prefer diesel motors as power source for their vehicles, small car customers are preferring petrol engines. Above that, the BS-VI emission norm that is about to be implemented across the country from April 2020, is expected to affect the diesel vehicle sales significantly.

With the BS-VI emission norm kicked in all the auto major needs to upgrade the engines to the new stricter regulation compliance. While upgrading the current BS-IV compliant petrol engines won’t be that difficult, upgrading the diesel engines is going to be a pricey affair. Post implementation of the new norm, pricing of diesel vehicles will be significantly higher compared to their current pricing.

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After the new norm kicked in, difference between the pricing of petrol and diesel engine powered vehicles will be pretty big. This will certainly affect the customers in the low-cost segment. In that case, such customers will shy away from diesel powered vehicles. Also, the reducing gap between pricing of petrol and diesel in India is going to play key role in this shift.

Overall, in the small car segment, diesel engines powered models will see difficulty in sustaining their business. The anti-diesel vibe started in India when the larger 2.0-litre above displacing diesel motors were banned in some parts of the country in an attempt to ban the alarmingly high level of pollution. This move drew flak from several auto majors like Toyota, Mercedes-Benz, Mahindra as these automakers majorly depend on diesel powered models.

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The ban on such vehicles was over after sometime. But, customer’s anticipation of another ban certainly affected the sales. Apart from that, as the Indian government has been constantly showing its eagerness towards introducing zero emission pure electric mobility across the country by 2030, that strategy too are expected to impact the sales of diesel powered vehicles.