- Low return on investment likely to have encouraged the company to abstain from diesel alternative
- Steadily rising fuel prices have encouraged customers to opt for electric and CNG alternatives
In recent times, we have witnessed a significant rise in fuel prices in the country. Moreover, the price gap between petrol and diesel is fast diminishing in the country, thereby encouraging customers to seek affordable alternatives in the form of electric and CNG options. As per media reports, the company plans to shelve the BS6 compliant 1.5-litre diesel engine option for its utility vehicle portfolio in the country.
Lately, we have witnessed a significant rise in demand for electric vehicles in the country, which further substantiates the company’s decision to stay away from a BS6 diesel engine option. Furthermore, the media report also indicates that the company has shelved diesel engine plans citing low return on investments.
The country’s largest automaker, Maruti Suzuki plans to introduce as many as five new utility vehicles in India by 2023. Suzuki Motor Corporation has recently announced its electrification strategy, wherein its plans to introduce strong hybrids and electric vehicles by 2025. Given the steadily growing demand for electric vehicles in the country, it is believed that Maruti Suzuki will gradually shift its focus on electrification in the Indian market as well. More details on the company’s future plans will be known in the days to come.
Source - Mobility Outlook
