Citroen will give diesels a miss within the mass market section as a part of its gasoline technique for India, despite the fact that its debut providing, the C5 Aircross premium SUV, can have a diesel powertrain. Explaining the transfer, Saurabh Vatsa, Senior Director, Advertising and marketing Operations and Company Communications, Citroen India, informed our sister publication Autocar Skilled, “We’re engaged on diesel and gasoline engines, each. Diesel will come within the C5, and the C-Cubed programme is primarily gasoline (petrol) at this time limit.”
- Falling demand prompted Citroen to desert diesels in decrease segments
- Regulatory framework panning diesels additionally performed a key position
- Citroen C21 compact SUV to sport a turbo-petrol engine
Citroen India’s reluctance for diesels
Vatsa attributed the corporate’s powertrain technique to the growing share of petrol automobile gross sales within the nation. He stated, “The demand for diesel autos has been steadily falling. If you happen to take a look at the combo (of petrol and diesel passenger automobile gross sales) from 10 years in the past when it was nearly 55:45, it is 75:25 now and rising in a short time to 80:20 in favour of gasoline.”
He added, “It would not make sense to be out of the market. If you find yourself coming in as a brand new participant, you’re looking on the greater chunk, so clearly you are specializing in 80 p.c of the market, not the 20 p.c.” Consequently, Citroen is opting to introduce solely petrol engines within the mass quantity fashions that are being developed underneath its ‘C-Cubed’ programme.
The automaker believes that larger prices have eroded the benefit of working diesel autos for many patrons. “You will need to see what the client is when it comes to the rupee worth profit that he will get out of a diesel engine in the present day. Regardless of us saying that diesel has its advantages, the client does his personal equations. With the pricing of gasoline and diesel gasoline nearly equal, the client is actually not getting a bonus in the present day,” commented Vatsa.
Furthermore, the senior govt talked about that the case for diesels is additional weakened by the regulatory framework, which is extra biased in the direction of petrols in sure cases. “In key metros like NCR, which is a big chunk of the market, you can not have a diesel automobile possession past 10 years, in comparison with a petroleum automobile which has its registration legitimate for 15 years. At this time, numerous clients are shifting, even for premium luxurious autos, and asking for petrol variants as a result of once they calculate the price good thing about a five-year discount in possession interval, it is a big impact,” he concluded.
Upcoming Citroen fashions in India
Citroen is betting on India in a giant manner as a part of its top-down technique. In January-March 2021, the corporate will launch the C5 Aircross which, priced above Rs 30 lakh (estimated, ex-showroom), will go up towards the likes of the Volkswagen Tiguan Allspace and Skoda Kodiaq. The ‘regionally assembled’ premium SUV shall be powered by a completely imported 2.0-litre diesel engine.
The automaker manufactures a 1.5-litre diesel mill on the PSA-CK Birla joint manufacturing facility in Hosur, Tamil Nadu. Whereas this unit was earlier anticipated to make an look throughout the corporate’s extra mainstream fashions in India, its newest assertion implies that there shall be no ‘regionally produced’ diesel Citroens in our market.
As such, the model’s first made-for-India mannequin, the C21 compact SUV, shall be powered by a 1.2-litre turbo-petrol engine. The sub-4m mannequin, which has already been noticed testing on our roads, will arrive later in 2021 and face stiff competitors from the likes of the Kia Sonet, Hyundai Venue and the Maruti Suzuki Vitara Brezza. With localisation ranges as excessive as 90-95 p.c, it’s anticipated to be priced competitively within the Rs 7-11 lakh vary (estimated, ex-showroom).
Citroen can also be engaged on its Hyundai Creta rival for our market. The mannequin is slated to characteristic the identical 1.2-litre turbo-petrol unit (albeit in a better state of tune), and isn’t anticipated to reach earlier than 2022. Thereafter, the corporate can also be stated to be mulling over the premium hatchback and sedan classes, each of which have seen a dwindling diesel demand in current instances.
How do Citroen’s rivals stack up?
Citroen’s petrol-only technique is shared by lots of its rivals together with Maruti Suzuki, which stopped producing diesel autos from April 1, 2020. Going through challenges in assembly BS6 emission norms, Renault, Nissan, Volkswagen and Skoda have ditched diesels and gone petrol-only, even for his or her bigger SUV fashions.
Nevertheless, the exit of many gamers from the diesel section has additionally created a chance for some rivals to seize a much bigger chunk of the diesel pie. Hyundai and Kia are betting massive on diesels, with the Korean duo seeing appreciable diesel demand for fashions just like the Hyundai Creta, Kia Seltos, Hyundai Venue and the Kia Sonet. Mahindra is one other participant with a major diesel line-up in our market nevertheless it’s Tata Motors that has made the a lot of the state of affairs with its BS6 diesel line-up. The Harrier is the one diesel-automatic and in its section and the Altroz diesel has cashed in on the absence of diesel competitors. Plainly the explanation these firms have given diesel a miss is extra on account of technical challenges in assembly BS6 norms than market dynamics.
Additionally see:
Citroen testing 1.2-turbo petrol engine in India with Berlingo MPV
Citroen C5 Aircross India trial manufacturing begins
India-bound Citroen C5 Aircross to get solely 2.0 diesel engine
