DNA Money Edit: BS VI – End of the road for diesel cars?

The automobile industry is gearing up for a major shift. With stricter emission norms - BS VI - kicking in from April next year, it might be the end of the road for small diesel cars. Many automakers are of the view that upgradation to new technology will make diesel cars expensive, especially the smaller ones, taking it beyond the affordability level of Indian consumers. Though, bigger diesel SUVs will continue to play.

Perhaps this is why Maruti Suzuki on Thursday announced phasing out of all its diesel vehicles. Diesel cars contribute 23% to sales of the country's biggest carmaker, which has decided to focus on CNG and hybrid variants along with petrol. Its rivals Mahindra & Mahindra (M&M) and Tata Motors are also working on similar lines, to remain ready with the product at the right cost when the deadline comes.

However, sceptics believe that it will be a difficult proposition, at least for coming few years as the infrastructure for alternative fuels and electric vehicle (EV) charging stations are still not developed enough in the country. On the other hand, proponents claim that the development will force the industry to set up more, better alternative fuel infrastructure.

According to rating and research firm Icra, under BS-VI, the price of diesel cars is expected to go up by about Rs 75,000 compared to an increase of about Rs 20,000 for petrol vehicles.