The Energy Transition Advisory Committee, headed by former petroleum secretary Tarun Kapoor, has also recommended that the city’s transport be a mix of metro trains and electric buses by 2030.
What is the background of this proposal on diesel?
The panel’s recommendations come in the wake of the government’s stated goal of reducing greenhouse gas emissions and producing 40 percent of its electricity from renewable energy as part of its net zero target for in 2070.
The proposed ban will have a significant footprint: a large number of cities in India have more than a million people and include not only metropolitan centers but also smaller towns and cities such as Kota, Raipur, Dhanbad, Vijayawada, Jodhpur and Amritsar.
Which companies in India manufacture diesel cars?
Maruti Suzuki, the country’s largest passenger vehicle maker, stopped manufacturing diesel vehicles from April 1, 2020 and has indicated that it has no plans to re-enter the segment.
The diesel engine, however, is part of the models offered by Korean manufacturers Hyundai and Kia, while Japan’s Toyota Motor has the Innova Crysta range. Local automakers Mahindra and Tata Motors also have diesel models in the market.
However, most automakers have moved substantially to deleverage their diesel portfolios since 2020.
So what is the problem with this proposal?
It is not yet clear how the proposed ban will play out, if it is accepted, and how practical it would be in terms of enforcement. This is especially true for medium and heavy commercial vehicles used for transporting goods on roads that criss-cross the country, and for buses plying in most Indian cities, where diesel is the mainstay. .
In addition, many players in the auto industry argue that automakers with a presence in the diesel segment already meet current emissions standards and have invested heavily in transitioning their diesel vehicle fleet from BS-IV to BS-VI emission norms.
And what are the reasons why people prefer diesels?
The greater fuel economy of diesel engines compared to gasoline engines is a factor. This is due to the higher energy content per liter of diesel and the inherent efficiency of the diesel engine. Diesel engines do not use high voltage spark ignition (spark plugs), so they end up using less fuel per kilometer as they have higher compression ratios, making it the fuel of choice for heavy vehicles.
Also, diesel engines offer more torque (turning or turning force) and are less likely to stall as they are controlled by a mechanical or electronic governor, thus proving better for transport.
So why have automakers started moving away from diesel?
The higher compression ratio of diesel engines means that there is an increase in emissions of nitrogen oxides (NOx), which is one of the main disadvantages of diesel engines compared to gasoline. The biggest blow to diesel, however, has been an external trigger: the Volkswagen emissions scandal, which led to an increase in negative perception against diesel in all markets, including India.
Also, the reason why Maruti Suzuki and other automakers announced their exit from the diesel segment was the launch of the new BS-VI emission norms that came into effect from 1 April 2020 and the prohibitive cost of upgrading diesel engines to meet the new standards. standards The government’s decision to go straight from BS-IV to BS-VI is the reason why car makers like Maruti Suzuki are claiming the unviability of retaining diesel in their portfolio.
Did the petrol engines also need upgrades as a result of the shift to BS-VI?
While gasoline vehicles needed upgrades for this transition, these were limited to catalytic converters and electronic control upgrades. But for diesel vehicles, upgrades were more complicated and entailed higher costs. Automakers had to put in three pieces of equipment: a diesel particulate filter, a selective catalytic reduction system and an LNT (Lean NOx trap) to meet BS-VI norms, all at the same time. This was vital to curb both PM (particulate matter) and NOx emissions as mandated by BS-VI norms.
For most automakers, the economics of the conversion simply weren’t worth continuing with the diesel option after the transition to BS-VI. “For us, diesel is completely out… We studied the market but found it didn’t make sense given the future regulatory environment, the cost would have been very high and it just didn’t make sense,” CV Raman. , said Chief Technology Officer, Maruti Suzuki India The Indian Express in an interaction earlier this year.
And what about diesel vehicle buyers?
There is the issue of the price of diesel and, consequently, running the car. The Indian carburettor’s love affair with diesel engines lasted almost a decade, with diesel cars accounting for 48 percent of passenger vehicle sales in the country in 2013. The main reason was the much lower price of diesel in petrol comparison – a yawning Rs 25 per liter at its peak.
But that changed when fuel price deregulation began in late 2014. Since then, the price gap has narrowed to around Rs 7 per litre, the closest the two fuels have been since 1991. Consequently diesel cars accounted for less than Rs 20 per litre. percent of total passenger vehicle sales in 2021-22, less than half the share they had five years ago.
So what is the overall result of this proposal?
A move towards phasing out diesel vehicles, and eventually petrol as well, is in line with the action of most federal governments around the world.
In India’s case, however, automotive experts foresee difficulties in implementing a total diesel ban because (a) carmakers – and oil companies – have invested heavily in the transition to BS-VI and all this investment could be wasted if a total ban were to be applied and; (b) in the commercial vehicle segment, where diesel penetration is very high and alternative fuel options such as electric vehicles, CNG, LNG and hydrogen are still only being explored, a total ban would cause severe disruption.
Automakers have consistently maintained that the government’s approach should be technology-agnostic and that interventions should be limited to prescribing strict operational standards, including emission norms.
If a particular technology or fuel type is unable to meet the standards, it should be phased out, rather than proposing a complete ban on a technology platform, an auto company executive said.
Oil marketing companies also claim that as per BS-VI emission standards, they have required oil refineries to substantially reduce the level of sulfur in diesel in view of the National Auto Fuel Policy put in force by the Centre, and that the Bureau of Indian Standards (BIS). ) has introduced the specification for “7 percent biodiesel diesel,” which further reduces diesel’s emissions footprint.
