Hyundai pads up for diesel car monopoly with implementation of BSVI norms.
Hyundai is planning to expand its production of diesel
vehicles while others are planning to move away because of the implementation of
the Bharat Stage VI (BSVI) norms. The norm will bring a change in the fuel, as
the BSVI complaint engine requires BSVI fuel. BS VI refers to the sixth stage of the Bharat Stage Emision norms that will come into effect from 1st April 2020 across the country. The BS emission norms are based on the European emissions norms and implement strict control over the emissions from vehicles.
Hyundai is looking to have a monopoly in compact diesel car segment that includes sedans and sports utility vehicles (SUVs) smaller than 4 metres. They are planning to bring more options in diesel engine vehicles. Most of he competitors of hyundai are converting BSVI complaint small diesel engines to BSVI complaint ones. Passenger vehicle makers such as market leader Maruti Suzuki India, Mahindra and Mahindra, Tata Motors, Honda cars India, Toyota Kirloskar Motor, Volkswagen India and Renault India have announced plans to pull diesel variants.
According to the Industry Estimates, prices of small BSVI- complaint diesel cars increase by Rs.1.3lakh to Rs.1.5lakh per unit. Hyundai believes that the demand for diesel cars will continue if good product are manufactured at good price. But the sale of diesel cars were reducing after the news of BSVI norms. This led to the change in the preference of buyers from diesel vehicles to petrol vehicles. The demand for diesel vehicles decreased because of the price difference that occured recently due to BSVI.
In the first seven months (April-October) of 2019-2020, the state of diesel vehicles sales fell 32 per cent year-on-year. Last year, the share had dropped 38 per cent. For Hyundai diesel models account for 38.75 percent in total sales and they are expecting a rise in sales when they launches BSVI complaint variants. They are planning to manufacture vehicles in better torque (turning power) and fuel efficiency. Sales forecasting and market research firm said Hyundai will emerge as the strongest player for fuel-type options by 2020.
Hyundai is looking to have a monopoly in compact diesel car segment that includes sedans and sports utility vehicles (SUVs) smaller than 4 metres. They are planning to bring more options in diesel engine vehicles. Most of he competitors of hyundai are converting BSVI complaint small diesel engines to BSVI complaint ones. Passenger vehicle makers such as market leader Maruti Suzuki India, Mahindra and Mahindra, Tata Motors, Honda cars India, Toyota Kirloskar Motor, Volkswagen India and Renault India have announced plans to pull diesel variants.
According to the Industry Estimates, prices of small BSVI- complaint diesel cars increase by Rs.1.3lakh to Rs.1.5lakh per unit. Hyundai believes that the demand for diesel cars will continue if good product are manufactured at good price. But the sale of diesel cars were reducing after the news of BSVI norms. This led to the change in the preference of buyers from diesel vehicles to petrol vehicles. The demand for diesel vehicles decreased because of the price difference that occured recently due to BSVI.
In the first seven months (April-October) of 2019-2020, the state of diesel vehicles sales fell 32 per cent year-on-year. Last year, the share had dropped 38 per cent. For Hyundai diesel models account for 38.75 percent in total sales and they are expecting a rise in sales when they launches BSVI complaint variants. They are planning to manufacture vehicles in better torque (turning power) and fuel efficiency. Sales forecasting and market research firm said Hyundai will emerge as the strongest player for fuel-type options by 2020.
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