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Tata and Mahindra will bet big on diesel engine cars, new models will be launched

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Tata and Mahindra will bet big on diesel engine cars.
Many companies have discontinued their diesel models.
BSVI standards were implemented in India in April 2020.

New Delhi. Two big automobile companies of the country Tata Motors and Mahindra & Mahindra (M&M) are going to place their bets on diesel engines. The prices of gas-powered automobiles are expected to increase after the second phase of BS-VI emission norms comes into force. Many companies have stopped using diesel engines.

There has been a considerable growth in the sales of sports utility vehicles (SUVs). The share of SUVs in total passenger vehicle sales in the local market to more than double in 5 years to 40% by FY2022. Diesel variants account for 64% of the volume in the mid-SUV segment and 94% in high-end SUVs in FY2021.

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18 percent market share
To be sure, the share of diesel vehicles in overall automotive total sales has dropped from 29% to 18% in FY20. India has implemented BS-VI norms from April 2020. Major car makers discontinued diesel engines in 42 hatchbacks, sedans and entry SUVs. But the ratio of gross sales in a growing market has been mainly stable in the last two years.

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Buyers today opt for diesel vehicles as they offer more torque and power. In fact, almost two-thirds of the total sales of the newly launched Mahindra Thar and Mahindra XUV700 are available for the diesel variants. In Scorpio this ratio is more than 75%. Tata Motors, which offers best-selling SUVs Harrier and Safari with diesel engine option only, said diesel vehicles will continue to form a major part of the company’s portfolio even after the implementation of BS VI (II) norms.

Tags: auto news, Bike News

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