Big names in the automobile industry laid down their arms and announce their decision to stop their production for diesel cars in 2020. Why these companies take this decision, what will be their negative and positive aspects.
Firstly, Chairman of Maruti india RC bhargav annouce that they will not produce small diesel engines fater april 2020 because demand of diesel engines in Europe is declining day by day due to BS6 norms by seeing this situation Maruti analyise that demand of diesel cars in inda will be decline after new emissions of BS6 norms in india. After Maruti now Mahindra and Tata join this league and announces that they will not produce small diesel engines.while maruti is totally giveup on diesel engines but Tata and mahindra only stop the production of their small diesel car like tiago,Tigor,Kuv100, but they will continue with their 1.5lts and above diesel engines.Main reason for shut downing the production of small diesel engine on B6 norms will increase their production cost by 20-25% so the profit margins these companies earn become limited,These companies also said that In India price matter the most as the production cost of car will increase then their price will automatically increases which result into fall in the sales of car.
On the otherside FORD India announces that they will continue with their diesel engines,Ford is Ready to take risk on diesel engines in the indian market, As resulting Ford car prices will be increase in future due to production with BS6 Norms.
Consequences of this Decision:
Positive result of this decision that in future we get good and powerful petrol engines. Secondly company fitted CNG will be see in cars as an option, Thirdly Companies focus more on Hybrid engines and most importantly Trend of Electric vehicle are coming in the market so autombile industry will totally change in the coming years. And The common reason due to which these companies take these shocking decisions is Enviroment obviously if the pollution is controlled and limited then ultimately our enviroment become good and hygienic.What should you do now:
If you are planning to buy an Maruti diesel car then wait till April 2020 because dealers will start clearing their stock fastly so at that time you get diesel car at cheaper rates with huge discount. But if you have an Maruti diesel car or any other company small diesel car then no need to worry because these companies provide maintainability and services to their diesel cars.
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