Maruti Suzuki Diesel Models Sales Increased This Month - TyreCafe

by Editor News


Maruti Suzuki Diesel Models are witnessing a rise in the demand, compelling the manufacturer of Vitara Brezza and Dzire to increase the production of some of the variants that it plans to bring to the market before the new emission starts in April.

The company is offering huge discounts and extended warranty to clear the inventory of Bharat Stage-IV variants. In the last few months, the sales of the diesel variants of Vitara Brezza almost doubled to 13,000-14,000 units from the previous months.

The company has extended the production of Brezza’s diesel variants till January, and have also increased the planned output by 3,000-4,000 units. In fact, including other models, the local subsidiary of Japan’s Suzuki Motor will be producing around 30,000 units of diesel vehicles in the next three months, which is almost 30-50% higher than its previous plan. The company has hired back close to 1,000 temporary workers it had previously let go of as the diesel variants of the Brezza and Dzire Tour, and other models like the new WagonR, S-Presso and XL6 have a waiting period for delivery.

The company has already started manufacturing vehicles conforming to the upcoming Bharat State-VI emission standards. It is now also producing petrol variants of the Brezza, which was previously available only in diesel. Maruti Suzuki had earlier said that it would discontinue production of diesel vehicles once the new rules come into effect.

A few other automakers, too, have said that they would rethink on their diesel strategy since the high cost of developing the engines won’t make those viable on small cars. Maruti Suzuki has already moved to BS-VI from BS-IV for as many as eight models, as the company is aiming for a smooth transition and avoiding a fire sale ahead of the March 31 deadline.

Diesel-powered vehicles accounted for 22% of the total volume for the company in the September quarter, compared with 33% for the industry. The company offered an average discount of Rs. 1.10 lakh on its diesel models in the three-month period.

The reason for the sudden spike in demand for Maruti Suzuki Diesel Models is the enhanced value proposition it offered with the extended warranty and steep discount, said Gaurav Vangaal, the country lead for production forecasting at IHS Markit.



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