Renault to stop selling diesel cars from 2020

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New Delhi | Published: June 20, 2019 1:44:52 AM

Following in the footsteps of market leader Maruti Suzuki, French carmaker Renault has decided to stop selling diesel cars in India after April 2020, when the Bharat Stage VI emission norms come into force.

Renault will be the second carmaker which has decided against the diesel powertrains.

Following in the footsteps of market leader Maruti Suzuki, French carmaker Renault has decided to stop selling diesel cars in India after April 2020, when the Bharat Stage VI emission norms come into force.

Renault’s global CEO Thierry Bollore said diesel is naturally decreasing in terms of proportion of sale globally. “Today, there is a clear regulatory approach. We have decided to limit the development of diesel powertrain when Euro VII comes,” he said, further confirming that the company will stop selling diesel cars in India from next year.

Renault will be the second carmaker which has decided against the diesel powertrains. In April this year, Maruti Suzuki announced it would stop selling diesel vehicles citing high costs involved in upgrading them, which would make it unaffordable for the end consumer.

Come April 2020, India will upgrade from BS-IV to BS-VI emission standard, the most advanced emission standard for automobiles and is equivalent to Euro-VI norms currently in place across countries in Europe. As a result, vehicles will become more expensive and the jump in prices will be bigger for diesel cars, given the higher cost of upgrade.

Currently, the price difference between petrol and diesel variants of a small car is around Rs 1-1.5 lakh. Once the BS-VI norms come into effect, the price gap between the two variants will be in the range of Rs 2-3 lakh.

Over the years, the share of diesel cars have come down significantly. As per data by SIAM and research agencies, from a high of 53% in 2013, the share of diesel cars has fallen to around 20% in 2019, Besides, share of petrol cars has risen to over 65%.

Instead of diesel, Renault is preparing to introduce electric vehicles (EVs) in the near future. When asked about the EV plans, Bollore said EVs would be part of the strategy when Renault targets to double its annual sales to two lakh units by 2022.

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