Prevailing poor demand could mark the end of Maruti Celerio diesel - Report

The 800 cc diesel engine may not serve post implementation of BS-6 norms.

According to a report on the Economic Times, Maruti-Suzuki may slowly withdraw its 800 cc diesel engine from the passenger car segment. At present, the Maruti Celerio is the only model fitted with this engine, which is (Maruti) Suzuki's first self-developed diesel engine, and also the first of a new diesel engine family. The report cites three people associated with Maruti-Suzuki as sources.

Since the start of this year, automakers, especially those in the entry-segment, are shying away from the diesel market owing to a lot of factors. The narrowing price gap between petrol and diesel, the government's unstable policy on diesel-powered cars, and accelerated timeline for the implementation of BS-6 emission norms (by 2020, cars in India will adhere to BS-6 emission norms) which will in-turn increase the price gap between a diesel and petrol car are the main factors at play.

According to the report, the cost of upgrading diesel engines to meet BS-6 norms will increase the price gap between a petrol and diesel car by INR 2 lakhs; it is around INR 1 lakh at present. One source told the publication that the Celerio's 800 cc diesel engine, referred to as DDiS 125, "has no future" in BS-6 norms, indicating that Maruti will slowly pull the plug on this unit.

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The Celerio nameplate though brings in healthy sales volumes of around 7,700 units/month, owing to its AGS (automated manual transmission) technology and fuel efficient three-cylinder petrol engine. Also, while the 800 cc diesel variant could face a discontinuation on the Celerio, it will continue serving the Maruti Super Carry, the company's first LCV for the Indian market.

[Source - Economic Times]