BS VI phase 2: Hyundai joins peers, bids farewell to diesel engine sedans

India's second-largest carmaker, Hyundai Motor India Limited (HMIL), has decided to stop offering diesel engines in its sedans, The Economic Times (ET) reported. The decision comes at a time when more and more customers in the passenger car segment are choosing to buy petrol vehicles.

Diesel engine vehicles have seen a steep hike in prices after the second phase of BS-VI norms was implemented by the government. This has led to a lot of consumers shifting to petrol vehicles, the report said. A steady rise in diesel costs has also played a significant role.

The report quoted data from the Society of Indian Automobile Manufacturers (SIAM), which said that sales of diesel vehicles in the passenger segment currently stand at 1.4 per cent (April-February FY23) of total vehicle sales, down from 11.4 per cent in FY20.

Hyundai's competitors, Maruti Suzuki, Skoda-VW, and Renault-Nissan, completely exited the diesel vehicle segment in the Indian market during the transition to BS-VI norms in April 2020. However, Hyundai has declared it will continue to offer SUVs with diesel engines.

Tarun Garg, chief operating officer of Hyundai Motor India, was quoted by ET as saying, "Demand for diesel is limited to, but very strong in, SUVs. In fact, the bigger the SUV, the greater is the proportion of sales we register from diesel. In sedans, demand for diesel was clearly coming down." He was speaking at the launch of Hyundai's all-new Verna.

Tata and Hyundai are the only carmakers in the country that offer diesel hatchbacks, namely the Hyundai i20 and Tata Altroz.