Automakers Risk Missing Diesel Boat in India
Automakers have been warned not to can all its diesel powertrains for its products in India because the demand remains for many consumers.
While admitting rising costs and tightening government emission restrictions have seen a steep decline in diesel sales, Bakar Sadik Agwan, senior automotive consultant at analyst GlobalData, believes it is far too soon to retreat from the market altogether. He said: “OEMs are certainly not finding the diesel segment in India as lucrative as before. Market leader Maruti Suzuki and other players including Nissan and Renault are looking to phase out their existing diesel variants and introduce more petrol, CNG or hybrid variants. Volkswagen is the latest OEM to join the list as the company plans to exit diesel passenger car market in India as part of its ‘India 2.0 strategy’. However, the company will continue to be present in the passenger vehicles segment as it intends to continue to supply SUVs in the Indian market.”
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