Tata Motors is reducing the size of its diesel engines to skirt a temporary ban on the sale of large diesel-powered cars in New Delhi as the government seeks to reduce toxic smog in the capital city.
Tata Motors is reducing the size of its diesel engines to skirt a temporary ban on the sale of large diesel-powered cars in New Delhi as the government seeks to reduce toxic smog in the capital city.
The ban on the sale of cars with diesel engine capacity higher than two litres in New Delhi was imposed in December and has hurt carmakers such as Tata Motors, M&M and Toyota Motor Corp.
The ban, initially imposed until March 31, has been extended by the Supreme Court, which has also indicated that it could levy an additional tax on the sale of diesel cars. The next hearing is later this month.
A lack of clarity on when the ban might be lifted and carmakers’ fears that it could be a precursor to a nationwide ban has prompted companies to consider ways around the ban.
Tata is re-engineering its existing engines to bring them below two litres, Girish Wagh, senior vice president of programme planning and project management at the company’s passenger vehicle operation, told reporters on Wednesday.
“A completely new engine takes almost or more than a year to come, but since this is something more innovative ... this will be done much faster,” Mr Wagh said.
Mahindra & Mahindra in January launched 1.99 litre diesel engines to counter the ban.
Earlier on Wednesday Tata Motors launched its Tiago hatchback. The car was originally slated to be called the Zica, short for Zippy Car, but was renamed after the outbreak of the similar-sounding Zika virus.
The car’s starting price of '3.2 lakh undercuts similar vehicles by rivals such as Maruti Suzuki India and its Korean rival Hyundai Motor and is equipped with features such as an touchscreen infotainment system and rear parking sensors in an effort to revive sluggish domestic sales.
