Auto major Tata Motors likely to phase out small diesel cars from its portfolio as demand is expected to slow down due to upcoming BS-VI emission norms, according to a senior company official.

Tata Motors currently sells its entry-level hatchback Tiago with 1-litre diesel engine, compact sedan Tigor with 1.05-litre powertrain and older models like the Bolt and the Zest with a 1.3-litre diesel engine.

“We feel that low demand for entry-and mid-size diesel models will not justify the high costs involved in developing a new small capacity engine,” Tata Motors President Passenger Vehicles Business Unit Mayank Pareek told PTI.

Pareek said the introduction of BS-VI engines will make the compliance expensive, particularly for small diesel cars.

Moreover, around 80 per cent of the demand in the said segment is for petrol variants, and thus, the additional required investment does not seem viable, he added.

The company’s other products like compact SUV Nexon and recently launched SUV Harrier come with bigger 1.5-litre and 2-litre powertrains respectively and are expected to be upgraded to the next level going ahead.

The company sources the 2-litre diesel engine for Harrier from Fiat.

“Given that these high costs will ultimately have to be passed on to the end customer, the sale of diesel vehicles will logically see a decline in the industry,” he added.

With diesel cars set to become costlier from the next year with the implementation of stricter BS-VI emission norms, major automakers are contemplating about the future of such vehicles in their portfolios.

Already, market leader Maruti Suzuki India (MSI) has stated that it would discontinue diesel models from April 1, 2020, when the BS-VI norms kick in, as it expects the increased cost would put most of the diesel cars, especially the smaller ones, out of reach of small car buyers.

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