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26th March 2022, 12:07 | #1 |
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| Diesel engines: The past, present & future BS6 emission norms came into force from 1st April 2020. Announcements for the same were made way back in 2016. Since then automakers in India were working to upgrade their engine portfolio to be compliant with the new rules. Petrol engine upgrade to meet new emission standard was relatively easy with a software upgrade, slight engine modification, in some cases use of enlarged catalytic convertor and additional hardware like a particulate filter. However, diesel engine upgrade to new emission standard was a tough job, because of high NOx content generated by diesel engine owing to high pressure under which diesel combustion takes place inside the cylinders of diesel engine. Prices of petrol engine upgrade were not that high (₹10,000 - ₹30,000), but for diesel, it was substantial (₹40,000 - ₹1,20,000), as later needed complete new set of exhaust after-treatment hardware and re-engineering, besides software upgrade. So, many companies have given up on diesel engines. Audi-Volkswagen-Skoda brands are owned by a single company, which was involved in a diesel emission cheating scandal globally known as ‘diesel gate’ in 2015. Their HQ in Germany was reluctant to support any further development of diesel engines for the Indian market, hence group as a whole in India has to drop the idea. Nissan-Renault alliance did try hard to upgrade the 1,461cc k9k series diesel engine with LNT (lean- NOx -trap) technology, but they failed to contain the NOx issue and has to give up the diesel engine. Last but not the least, Maruti failed to upgrade their in-house developed 1,498cc diesel engine due to high NOx content as they were not able to manage thermodynamics quite well. So their focus shifted to CNG, as an alternate fuel choice, which still is not able to fully compensate for the diesel engine sales void. Result – diesel % mix settled around 18%. Though, 2020, and 2021 diesel mix data are the same, volume is higher in 2021. This implies that demand does exist, but supply-side wariness, made the diesel engine market artificially limited to an 18% level. Only a handful of diesel engines survived the very litmus paper test of new emission standards (BS6) adopted by the Government of India. But that is not all, the next round of tests is coming up in April 2023 – the second phase of BS6 - known as BS6 RDE (real-time-drive-emission). Threat looms over smaller 1,500 cc engine, rather than higher capacity engines, as later already uses Selective Catalytic Reduction (SCR) for NOx treatment. Engine with a displacement of 1,500cc or less used on monocoque chassis was made BS6 emission norms compliant by using lean-NOx-trap (LNT) technology which is a cost-effective technology because SCR technology uses much larger and expensive hardware. For the BS6 RDE phase, if small diesel vehicles have to be fitted with SCR, there would be additional costs, and some smaller vehicles may not be able to accommodate SCR hardware, and this may reduce the appeal of diesel engines for small cars.The new phase will test the willingness and technological competence of the current manufacturers. BS6 and RDE phase information: https://cdn.cseindia.org/attachments...share_arai.pdf This study will focus on 2021 data first, as in 2020, many manufacturers were ramping up diesel engine production in a highly uncertain COVID-19 induced pandemic period. Let us start with having a look at the diesel engine that survived till 2021 and how they are performing right now. 2021 analysis - diesel engines that survived BS6 challenge Diesel engine manufacturers
Before deep dive analysis, it is important to encapsulate why diesel engine is preferred in some cases over alternate fuels in the passenger vehicle segment. Advantage of diesel as a fuel for internal combustion engine
The fuel price gap plays a very crucial role in the fuel mix of the passenger vehicle market.
Higher fuel efficiency and relatively lower price (variable) of diesel as fuel lead to lower average running cost which offset the higher initial cost of purchase of vehicles with diesel drivetrain over petrol drivetrain and thus delivers higher monetary benefit over the long term, provided vehicle covers higher mileage every year. Also, higher torque is purposefully useful in case a vehicle has to carry more passengers or luggage or both together or is inherently heavyweight, besides that it also adds a fun element to the driving experience. Needle mover - Automatic transmission Availability of torque convertor gearbox or alternate automatic transmission has a significant impact on buying decisions for self-driven passenger vehicles. This impact becomes more apparent in the coming section. Exceptional deterrent Diesel vehicles older than 10 years need to be retired in the NCR region due to NGT orders. Turbo petrol engine Manufacturers these days have started using common technology of forced induction (turbocharging) and direct injection in a petrol engine to downsize the petrol engine and improve torque output. This is why, for similar displacement, turbo petrol engine cost the same as diesel engine, with power advantage and at par (nearly) torque output. Result – more fun to drive car - costing same as a diesel engine with relatively lower fuel efficiency. Theoretical break-even point The Below graph (the ideal situation with assumptions) to a certain extent encapsulates the outcome of the customer benefit statement. The higher fuel price difference will lead to diesel advantage in monetary terms, but the lower fuel price difference will only prolong the return period on diesel-powered vehicles. Deep dive analysis – segment-wise Hatchback segment After 2012, diesel mix started to drop in line with the fuel price difference. FCA sourced a 1,248cc diesel engine fueled the lead of Maruti products in every segment Maruti was participating. Maruti used to contribute nearly 40-50% of diesel hatchback sales during the 2012 to 2019 period. So once Maruti abandoned the diesel dream, the volume of the overall segment too dropped. Other manufacturers with a BS6 diesel engine could not cash in much, as an opportunity just vanished in thin air. The diesel engine in the hatchback segment seems to be on its last leg in the BS6 emission norms era. Sedan segment Besides Maruti – Tata and Volkswagen diesel sedans were contributing a lot to the diesel sedan segment in the early part of the decade. Then came Honda with its 1,500cc diesel engine on Amaze and City and diesel sedan sales reached nearly 80,000 units level for Honda. Similar to elsewhere, the diesel mix in the sedan segment started to drop drastically after 2013. Maruti was a major benefactor (~50%) as well as a beneficiary in the sedan segment, as Dzire diesel sales crossed the 1,50,000 mark, partly contributed by the fleet segment. But when Maruti abandoned the diesel engine, not only diesel sedan segment collapsed but Dzire sales were bruised badly and failed to recover quickly with the petrol-only engine. Honda and Hyundai sales in the BS6 era are not remarkable either and slowly but surely diesel demise in the sedan segment is imminent. Monocoque UV segment – SUV/MUV/Crossover Split between monocoque and body-on-frame construction gives a more realistic picture of development. Diesel monocoque UV segment growth was fueled by Mahindra XUV 500, Maruti Ertiga, Renault Duster, and Ford Ecosport in the early part of the decade, each being a definitive product. The latter half of the decade was turbocharged (literally) by Maruti Brezza followed by Hyundai Creta. Diesel only Maruti Brezza sales even crossed the 1,50,000 mark in 2018. Maruti diesel story and fall in fuel price difference – template - is also applicable here too, though with lesser impact, as Hyundai-KIA propped the entire segment in the BS6 emission era. Entry of Tata Harrier and Tata Safari (New) with FCA and Hyundai sourced engine and automatic transmission, respectively, is putting the segment back on volume growth trajectory without mix improvement. Body-on-frame UV segment – SUV/MUV/Crossover The purpose of splitting UV on the chassis line makes more sense with the below graph, which is highly skewed in favor of diesel engines. 1-2% petrol mix in the early part of the decade was contributed by Maruti Gypsy. Toyota does have had petrol engine option for Innova, but absolutely nobody was buying one before 2016. In 2016, NGT has imposed a ban on 10-year-old diesel vehicles in the NCR region, and reluctantly diesel mix reached to measly 2-3% in recent years for the segment. But Mahindra has bucked the trend by introducing petrol Thar with a 2L turbocharged engine and sweetening the deal with an option of 6-speed automatic transmission. Thar petrol mix was at 35% level in 2021. Here changed value proposition (easy to live with everyday off-roader) of the Thar is the real reason. Now, it appeals to city dwellers with different lifestyle aspirations. Well, in reality, Thar is bought mostly to show off than any real hardcore off-road expedition. But then Mahindra has rightly figured out the very hidden emotional need and had shown the courage to develop and deploy a petrol engine for Thar. Some are trend followers and some just create one with Jeep Wrangler rip-off. Product Analysis - How value proposition offered by individual products affects diesel mix Hyundai-KIA It is pretty evident that Hyundai’s product portfolio still has diesel dominance. One major reason is Hyundai makes better diesel engines than petrol engines. Maruti is well known for making refined and highly fuel-efficient small petrol engines, both the terms being relative. Hyundai since the Santro days (1998) could not match the fuel efficiency and refinement level of Maruti’s petrol engines and still couldn’t. Remember how Hyundai brought Eon as Maruti Alto’s killer. Eon was having a much better interior, and feel-good factor for that price, but vibrations of the newly developed 814 cc engine could be felt from the gear lever. How Eon performed? Eon got killed in an attempt to kill Alto. Many complaints that Maruti has always nursed the sentiment or rather an obsession of Indians for ‘Kitna deti hai?’ (what is the fuel efficiency?). Well, better fuel efficiency is a technological accomplishment that others failed to achieve. In the new realm of battery electric vehicles, ‘Kitna deti hai?’ (what is the range?), is even more vocal! Alcazar: 1.5L diesel engine though has week proposition due to lower power output but compensate with the fuel efficiency, over 2L naturally aspirated engine option. But the overall product performance is subdued. Tucson: 2L diesel engine with 8AT option is way more competent in the whole segment than a relatively weak 2L naturally aspirated engine with 6AT option. Creta & Seltos: Price difference between diesel and petrol Creta is low, at ₹96,000 and consistent across variants and offered right automatic choice for the fully-loaded top-end variant. In comparison, Seltos price difference is higher at ₹110,000 and doesn’t offer automatic transmission on the top-end fully-loaded variant, hence diesel mix of 53% and 45% respectively among them. Venue & Sonet: Both offer turbo petrol in comparative trim level and hence such low price difference and also the diesel mix on the left side of 50%. Here Sonet trumps with a proper torque convertor automatic transmission option for diesel engine, so is the high mix of 39%, vs 21% of Venue. Verna: Just like Sonet, Verna is the only product in the segment to offer proper torque convertor automatic transmission option for diesel engine, hence a higher mix of 36%. i20: Diesel engine price surcharge in BS6 era is as high as 19%, thus eroding any long-term gain. Honda The diesel engine is more powerful on both WRV and Amaze w.r.t petrol engine and Amaze is also offered with CVT option for diesel engine, thus relatively higher diesel mix. Unlike Amaze, City doesn’t have diesel with automatic transmission option thus limiting its appeal for diesel engine, also, the petrol engine is much more powerful on paper and refined in person. Mahindra
The high price surcharge of the diesel engine is a major deterrent in the BS6 era especially fuel price difference is less and seemingly non-supportive. In-house developed Tata petrol engines are no match for Maruti’s engine but then they are getting the job done in the category. More than the engine it’s the overall value proposition and aggressive sales push that is leading to higher sales of Tata vehicles. The way electric powertrain is gaining prominence in current Tata products, discontinuation of 1,500 cc diesel make more sense – both financially and practically. Toyota Toyota is offering a poor petrol engine on the major UV product line, both in terms of performance and fuel efficiency. Whereas updated diesel engines of Toyota are way too good on most performance parameters. And nobody could ignore it. NCR is the region that mostly contributes to the petrol mix due to the seemingly unscientific NGT rule. This is unlike the case of Mahindra Thar petrol engine, which has better performance figures than diesel, the only downside is fuel efficiency. MG Unlike Tata, MG doesn’t offer automatic transmission for FCA sourced 2L diesel engines on Hector. So, if a potential customer wants to buy automatic Hector - has to settle down for lifeless petrol CVT Hector. Jeep Compass price and powertrain option are perplexing. Before 2020 there wasn’t any diesel automatic option, in today’s date diesel automatic is available from a steep price point of ₹27,00,000, that too with AWD option, making it ₹3,00,000 more expensive over petrol automatic. Petrol isn’t much fun to drive nor very fuel-efficient, but diesel pricing makes a case for the petrol engine. Case study – products that not only survived but thrived with petrol only BS6 compliant engine Maruti Ertiga Second generation Ertiga with all new CNG thrust from Maruti has scripted a success story even without a diesel engine. More can be read here. https://www.team-bhp.com/forum/india...rtiga-xl6.html (How Maruti cracked the Compact MPV code with the 2nd-gen Ertiga & XL6) Skoda Superb 3rd Generation Superb 3rd generation was launched in 2016, with a 1.8 TSI petrol engine with a choice of manual or automatic transmission and a 2.0 TDI engine with an automatic gearbox, both the engines producing near identical power figures. Diesel mix was low due to steep price premium charged by Skoda to the tune of ₹ 2,50,000, over petrol variant. Come 2020, facelift Superb was launched with a new BS6 compliant 2.0 TSI petrol engine mated to an all-new wet clutch gearbox known as DQ381, replacing the notorious dry clutch DQ200 gearbox, and the diesel engine was discontinued. In 2021, Skoda further updated its top-end L&K variant with more bells and whistles, and the very year it posted its highest ever sales in 3rd generation product life-cycle. Single drivetrain with updated feature list has achieved new sales heights, which twin-engine strategy could not in the past, that too towards the end of PLC in an already diminishing segment. What future holds for different diesel engines? This will depend on fuel pricing, the demand for diesel engines over petrol based on the overall value proposition each product holds after any upgrade needed for the BS6 RDE phase. Hyundai-KIA
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26th March 2022, 14:59 | #2 |
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| re: Diesel engines: The past, present & future While diesels have traditionally ruled segments, their present is weak (Except in bigger cars) and the future is death when strong hybrid engines finally takeover. Hatchbacks- Leaving the unavailability of diesels in the whole segment aside, even the products with diesels (Altroz, i10 and i20) have negligible demand for diesels and hence, I believe diesel hatchbacks will be completely dead by next year. Sedans- India as of today, has only 4 diesel sedans on sale and even those have a low diesel share (Except Verna maybe?). Hence again, diesel sedans might also die by 2023-24 as I do not see a reason why manufacturers would waste money in them! Compact SUVs- Now, diesels in compact SUVs are not very near to death, but as of my opinion, I do not see them surviving for more than 5 years as sales penetration of petrol SUVs has been increasing at a high rate. Plus, with most manufacturers not supplying diesels anymore, I believe the remaining (and already declining) demand is also set to die down slowly. If we see sales share of diesel SUVs in comparison to their petrol counterparts, the decreasing demand is obvious as only the Creta diesel dominates its petrol counterpart (marginally) and others are already being dominated by petrols. MUVs- India's highest selling MUVs are either petrol only (Ertiga/XL6 and Triber) or diesel only (Bolero) or have an incompetent petrol engine (Innova) and hence, we cannot compare multiple products. But the sales takeover of diesel by CNG on the Ertiga definitely suggests that diesels can be forgotten by customers if a competent alternative is provided by the carmaker. I believe that even the Innova's diesel share can decline to quite some extent if Toyota provides a strong hybrid petrol in its next iteration. Bigger SUVs- Same story as MUVs, many big SUVs like the Fortuner, Gloster, Harrier, Safari etc lack a petrol engine option (or competent petrol engine in Fortuner's case), and hence the demand of petrols can not be ascertained by these products. Now, diesels still hold considerable demand as strong hybrids are the only alternative and have not picked up in the market yet. But, the 29% petrol 7OOs, 62% petrol Hectors (could be influenced by the lack of diesel AT) and 46% Compass SUVs (up from 17% 5 years ago!) definitely suggest that petrol engines are gaining popularity in bigger cars and when strong hybrid engines finally pick up in those segments, diesels will have a tough time there as well! Hence, in my opinion, the future of diesels is death, varying from immediate to slow, depending on the bodystyle you choose. Last edited by theAutomaniac : 26th March 2022 at 15:04. |
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28th March 2022, 10:29 | #3 |
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| Re: Diesel engines: The past, present & future Really comprehensive analysis providing the complete story and expectations backed by relevant data. Well done. You should look at Analytics / consulting as a career option if not already there I still think diesel will survive though in a limited format given the strong rural demand. There is no alternative to the bolero and the myriad other pickups. Urban demand will be restricted to big SUVs like the Fortuner or premium segment vehicles. I am going to miss the addictive torque on my diesel Nexon when it’s time for an upgrade . |
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28th March 2022, 11:33 | #4 |
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| Re: Diesel engines: The past, present & future
As duster awd and former ecosport diesel owner, after trying the Taigun (both 1.0 and 1.5), I can confidently say you wouldn't miss that torque one bit if you go with either of these two. |
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28th March 2022, 12:05 | #5 |
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| Re: Diesel engines: The past, present & future Great detailed analysis! Looks like Diesels are gonna be restricted only to commercial vehicles and big SUVs when the new norms kick in. Looking at the sales figure, the only small Diesels (sub 1.5L) that has a chance to survive are Hyundai/Kia's and Mahindra's 1.5L diesel. 37% is a pretty good chunk to give away especially since Hyundai/Kia's petrol is not very fuel efficient in comparison with MS. I believe MS is able to manage without Diesel so far is because of their fuel efficient petrol engines; Along with the CNG engines looks like MS can completely compensate all the missing sales from Diesel. So it would make sense for Hyundai/Kia and Mahindra to invest in their 1.5L diesel and make it ready for new norms. They could be the only manufacturers to sell small diesel engines and carter the demand. Yes, the torque won't be missed but FE will be sorely. Right now I'm able to drive my I20 Diesel with a moderately heavy foot and still extract ~20KMPL FE but with turbo petrols that is definitely impossible. |
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28th March 2022, 12:19 | #6 |
BHPian | Re: Diesel engines: The past, present & future Kudos!That was a very comprehensive 360* degree comparison with data and analysis. BS6 killed the appetite of Diesel engine in companies like VW and Maruti which were making healthy profits with their Diesel. Given that impact I think RDE could wipe out the Diesel engines in the < 1.6l category. It would be like the old times I guess. Petrol for hatchbacks and sedans and diesel for SUVs, not including the big German marquees. VW has come up with an awesome petrol array and I think even the predominantly diesel Tata and Mahindra could switch to petrol at the lower end of the stratum as there may not be a business model. We were sort of liberated on the FE front due to the diesels in the hatchback/sedan class but now we have to go back to being mindful. I am guessing we will see reduced speedsters in the future NH jaunts at least till the FE of petrol engines at speeds rise, if ever. Also, Would that mean lighter vehicles at the lower end ?… probably 🤨 The only thing I am worried about is the velocity of the rollout of e20/25 . Given that our fuel pump operatives don’t even know the difference between diesel and petrol, how are they going to manage e10/15/20 side by side and with 90% of the population not even knowing the difference! With Chennai being so humid, it is going to get interesting in the next 4 to 5 years here. |
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28th March 2022, 12:42 | #7 |
BANNED | Re: Diesel engines: The past, present & future I wholeheartedly agree that diesel is here to stay. There is no way to sidestep the use of diesel engine in transportation. Battery cars and petrol vehicles are not a replacement tor the diesel engine. Previously, there was a limitation regarding frequency of usage in a diesel engine. This had been done away with the crdi technology and is now at par with the petrol counterparts with both of them being plagued by power sapping electronics that render their battery drained inside a week. It is a wonder that Force could make their engine compliant while Maruti had failed at it. Hats off to Isuzu for taking the proper stance and not caving in to the false propaganda of environmentalists. Last edited by Aditya : 29th March 2022 at 16:47. Reason: Typos |
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28th March 2022, 12:54 | #8 |
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| Re: Diesel engines: The past, present & future I feel like I have been living under the rocks. Did not realize until this thread that in 2022 Hyundai is still churning out i10 with 1.2L diesel engine. Once a staple and hot favorite this car is hardly discussed on the forum now a days. Only time i10 (that too petrol turbo) is mentioned, is when someone wants a fast fun hatch that doesn't come with VW headaches. |
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28th March 2022, 12:55 | #9 |
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| Re: Diesel engines: The past, present & future Really impressive analysis. It was a gripping series of data points, analysis and with in-depth well though-out propositions in between, making the reader know the "why" part that peeps in the mind. And I can't think of any aspect not been covered to show the future clear ahead of time. A genuine guide for car buyers for the next few years to come. People would be more certain of choosing their models after reading this. Really appreciate. |
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28th March 2022, 14:29 | #10 |
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| Re: Diesel engines: The past, present & future Stellar analysis! Further corroborates my view that 2019 was probably the best year to buy cars in India in the recent past thanks to a wide variety of engines being on offer and car prices being much lower. Not to mention no Covid effect. Amongst all the diesel engines that we have lost to the BS6 transition, the ones whose loss is felt the most are the Fiat sourced 1.3 litre Multijet and the VW group's 2.0 litre diesel. |
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28th March 2022, 14:41 | #11 |
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| Re: Diesel engines: The past, present & future Very thorough, enjoyable and information filled article indeed. Predicts the future of Diesel vehicles with proper reasoning. About Tata, may be this is why are trying to push their electric lineup so that it can replace the diesels altogether. |
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28th March 2022, 16:16 | #12 |
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| Re: Diesel engines: The past, present & future @pqr : Very nice and detailed analysis. Thoroughly enjoyed your post. I do believe that diesels are here to stay for quite some time especially in larger and heavier cars. All the electrification that we are seeing is currently restricted only to passenger cars. The development at LCV or HCV segments with regards to electrification is happening at snail's pace and they are the largest consumers of diesel in our country. The real difference will be seen when these segments also migrate towards electrification, as when that happens then the availability of diesel as a fuel itself will be a big question mark. |
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28th March 2022, 19:53 | #13 |
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| Re: Diesel engines: The past, present & future Excellent compilation of facts and nice comparative details listed down. The post gives substantial inputs for people who are planning to buy a car but still undecided on Petrol vs Diesel. Well written @pqr |
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28th March 2022, 21:37 | #14 |
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| Re: Diesel engines: The past, present & future Superb thread! The timing could not be more right! The length and breadth of the article are simply all-encompassing. Thank you for the effort. It is helpful to anyone looking at a diesel option now. |
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28th March 2022, 21:43 | #15 |
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| Re: Diesel engines: The past, present & future Maybe it's too early to include EV"s in comparison, but would be interesting to see how things change in next few years with most companies ramping up their EV's production lines |
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