 "'Tiago will help us improve market share'")
“It is not fair to target a particular fuel, (just) as it is not fair to only target the automotive sector. The sector, as proven by statics, is actually responsible for (only) a smaller part of the total pollution bill,” he said on Wednesday at the launch of the company’s Tiago hatchback.
Tata is among a host of companies, including Mahindra & Mahindra (M&M) and Mercedes-Benz, severely impacted by recent pollution control measures. These include a ban on sale of all diesel vehicles in the National Capital Region (NCR) having engines above 2,000cc, since December 2015.
Additionally, the government for the first time levied a tax in the Union Budget on the basis of fuel type, not on the dimensions or specifications of vehicles, traditionally the case. A 2.5 per cent infrastructure cess was levied on diesel passenger vehicles; petrol counterparts saw a one per cent cess.
“(Instead of) addressing pollution from all different angles and to pick out one particular element (like a) guinea pig, so to say, and put all the pollution issue on this one fuel or technology is not proper,” mourned Butschek.
Late last month, the Bihar government proposed a ban on sale of diesel vehicles above 2,000cc, after high pollution levels in the state capital during the winter months.
Following all this increased activism against diesel, companies are revisiting plans of investment in development of diesel technology. Pawan Goenka, executive director at M&M, had said in December: “When we make an investment, we have to know that the investment will live out its life.”
While the battle to lift the ban on sale of diesel cars could go on in the Supreme Court, companies are looking for internal solutions. For instance, M&M, largest manufacturer of sports utility vehicles, has diversified into petrol engines for its small SUVs for the time being. The company has indicated all its models will come with a petrol engine option.
Additionally, at least two of its models, the Scorpio and XUV500, are presently sold with a 1,990cc engine, circumventing the NCR diesel ban. Tata Motors had indicated earlier this year during the Auto Expo that it was also working on sub-2,000cc engines for its utility vehicle range.
“The whole pollution issue requires far more global review. Global not in terms of around the world but in terms of the perspective, a more holistic approach. We are very strongly committed to fuel efficiency (and) to ecologically responsible drivetrains. We are open to all kinds of discussions, we fully support the government but let us actually address the problem,” said Butschek.
Tata Motors has a very strong diesel background. It launched the Tiago (formerly named Zica) with a compact diesel engine option alongside a petrol engine. The diesel engine, a newly developed turbo-charged mill, delivers nearly 28 km a litre.
“We are pretty much known in the market for diesel. We have the most advanced three-cylinder petrol engine which is seen in the Tiago. We are as strong in the petrol engine as we are known in diesel engines. We will make ourselves independent from diesel because we believe we have the capability and competences, and we will follow the market demand at an appropriate speed,” added Butschek.
