Unfair to target only diesel vehicles, say automakers

Vehicle manufacturers say haste in a single direction won't address a complex problem

Friday's strong move by the National Green Tribunal (NGT) against diesel-powered cars and the other moves in the officing in this regard, from the Supreme Court and the city government of Delhi, have automobile manufacturers cautioning against haste in making such important decisions.

With the recent Volkswagen fiasco, diesel cars have already come under intense scrutiny worldwide. However, aver industry experts and manufacturing companies, today's diesel technology is nowhere the same as a decade before.

"Emissions from today’s diesel vehicles have considerably reduced, thanks to more efficient engines and much more effective emissions control technology. While diesel is more fuel-efficient than petrol, it also meets all emission norms laid down by the law,” said one manufacturer, declining to be identified.

Following the fuel's price deregulation and subsequent improvement in petrol fuel-efficiency, companies have also reduced the focus on diesel engine development. They've veered, instead, towards CNG, LPG and partial hybridisation technology in recent years.

Jnaneswar Sen, senior vice-president (sales and marketing) at Honda Cars India said of this week's developments: “Such piecemeal solutions will never work out. We need a well-thought strategy, rather than a sudden reaction. We have made investment in setting up diesel facilities and such sudden announcements will disrupt the market for everyone.”

While diesel emissions have come under focus in Delhi, manufacturers say that national capital's share in diesel cars is not significant. "Delhi was never a strong diesel market. Of the Amaze and City models we sell in Delhi, only 25 per cent are diesel; in Maharashtra, it is 40 per cent,” added Sen.

Wilfried Aulbur, managing partner at Roland Berger Cosultants and former head of Mercedes-Benz India, said: “It is absolutely important that we do our part in protecting the environment. At the same time, the government should not decide technology for the industry. It should take the interest of local manufacturers into account. We should have a holistic approach towards pollution. Burning of plastic is a major issue and a bigger problem than diesel emissions.”

State governments have taken note of the NGT ban. Karnataka's transport commissioner, Rame Gowda, said: "For now, we have equal number of petrol and diesel cars. Diesel cars are bought for mileage due to fuel efficiency. We have to study the order.”

As on October, Karnataka had 15.6 million automobiles, including two-wheelers. Of this, a  third -- 5.9 mn — ply in Bengaluru.

A Maharashtra transport department official said, “The department will need to study the NGT order."

In India, diesel-powered cars saw a boost three years earlier, when the government decided to deregulate petrol prices, pushing the gap between diesel and petrol wider. Maruti Suzuki, Honda, Hyundai and General Motors were forced to offer products which also ran on diesel, beside petrol. Diesel cars share rose to as high as 75 per cent in certain models during peak demand. As of now, 55 per cent of passenger vehicles sold are petrol-powered and the rest by diesel.

With uncertainty over government policy, companies have refrained from making 'diesel only' investment. Ford, General Motors and Hyundai have invested in a hybrid manufacturing processes, which can make petrol and diesel engines on the same production line.