Maruti Suzuki will be expanding its S-CNG portfolio further while depending on the market response, it could develop a large capacity BSVI diesel engine
Maruti Suzuki India Limited (MSIL) does not find any valid business viability in developing new BSVI compliant diesel engines for its budget small car lineup. The arrival of the more stringent emission standards since April 1, 2020 has led manufacturers to discontinue their small capacity oil-burners as updating them and the cost incurred would ultimately hurt sales volumes in the budget conscious space.
Thus, more focus has been put on producing new petrol engines and updating the existing gasoline units for better efficiency while being cleaner to comply with BSVI regulations. Shashank Srivastava, Maruti Suzuki India Limited’s Executive Director Sales and Marketing, told in a recent interview that he sees “absolutely no logic in developing a small diesel engine“.
He further explained that the diesel sales account for less than five per cent when compared to the petrol versions in the hatchback segment and it has reduced by a big margin in “sedans and entry-level SUV segment as now economics does not support it”. The largest carmaker in the country has been open about intentions to expand its CNG range and it has backed it up with consistent launches.
Last month, Maruti Suzuki announced reaching one lakh sales milestone with S-CNG vehicles in a single financial year. The company sold a total of 1,06,443 units in FY2019-20 and witnessed 15.5 per cent CAGR increase in its CNG sales over the last five years. The factory-fitted CNG fleet comprises of Alto, WagonR, Eeco, Tour S, Ertiga and Super Carry.
Cumulatively, Maruti Suzuki retailed well over one million eco-friendly vehicle across India and is primed to do more under the ‘Mission Green Million’ as the next one million green car sales is targetted at a much lesser timeframe. Srivastava did not rule out the possibility of a larger BSVI diesel engine though as he said the market is being watched closely.
The brand “can always look at developing a bigger BS-VI diesel engine” if customers exist and it might be the case in the SUV space in the near future. Being skeptical he believes, “such market (diesel SUV, sedan) will slowly disappear,” as well. He plans to further expand the S-CNG portfolio in the coming days as CNG vehicle sales increased by seven per cent last FY when the overall industry numbers went down.