Srinagar, May 7: Maruti Suzuki’s plan to phase out its diesel car portfolio from April 2020 is likely to come as a rude shock for the car maker’s diesel car owners in J&K.
Diesel vehicles contributed about 23% to Maruti Suzuki’s total sales of 1.75 million vehicles in FY19.
Unnamed company executives, who did not wish to be named, told Ziraat Times that the change in diesel mix (vis-à-vis petrol) alone will impact about 3% of his company’s (automotive) topline as he sees a drastic drop in the penetration of the diesel vehicles in the overall passenger vehicle segment.
J&K will be affected too badly, considering that in most of the hilly habitations, Maruti diesel car variants are very popular.
One of the biggest flip sides of this move is that non production of diesel vehicles from April 2020 will result into loss of big volumes of associated parts for the company that is likely to impact the car owners who would continue to use the diesel variants after the phase out.
A diesel engine consumes additional content worth ₹3,000 – ₹5,000 more than that in a petrol engine, and is costlier in the range of ₹75,000 – ₹100,000 over its petrol counterparts.
Detailed analysis of Maruti phase out will appear in ZT print edition