Government of India would implement BSVI emission standards across the country by 2020. These stricter emission standards, which are equivalent to EURO 6, will lead to increase in prices of small diesel cars on offer in the country.
In order to adhere to these new emission norms, car manufacturers will need to make changes in their diesel cars which will entail added expenses thereby pushing the prices up significantly. Diesel engined vehicles will need to be upgraded with Diesel Particle Filter and Selective Catalytic Reduction to comply with the upcoming norms.
With more such emission reducing technologies on board, an average diesel car in India is estimated to get dearer by INR 1 lakh. However, despite these emission norms coming into effect, it will not have any major effect on petrol engined vehicles for the fact that they are simpler where technology is concerned and would require only minor adjustments and ECU changes to achieve reduced emissions. The cost increase is estimated to be around INR 7,000 – 11,000.
This means, if a car costing INR 4 lakh today for petrol variant, will be costing INR 4 lakh in 2020. The same car’s diesel variant which costs INR 5 lakh today, will be priced at a minimum of INR 6 lakh in 2020. According to Mr R C Bhargava, Chairman, Maruti Suzuki, this will result in the death of small diesel cars in the country.
It is with this in mind that major automakers in India have shifted focus to petrol engine vehicles. Maruti Suzuki, Tata Motors and Mahindra & Mahindra have already started showing greater emphasis on petrol vehicles while other automakers are expected to follow suit.
Via – ET Auto