Tata Motors to build petrol engine for premium SUVs

livemint.com:

NEW DELHI : Tata Motors is developing a petrol engine for its premium sport utility vehicle (SUVs), as the diesel fuel options are not being received well by the consumers as well as the government. The petrol engine will take around a year to develop and will be used on Harrier and Safari, which are currently available only in diesel options, a top official told Mint in an interview. “It’s slightly late, because as I said, not only are we in the process of developing an engine, but also it has to be developed and integrated into the vehicle.

So, it’s kind of a ground-breaking project and it’s only more than one year away," said Shailesh Chandra, managing director of Tata Motors Passenger Vehicles Ltd and Tata Passenger Electric Mobility Ltd. As India is working on a transition towards green energy, the government is incentivising hybrid engines and electric vehicles but also looking at penalizing diesel vehicles. Road transport minister Nitin Gadkari, in September, said he might consider proposing an additional 10% tax on diesel-run vehicles and generators, if there is excessive usage.

He later clarified that there are no plans in active consideration of the government. The diesel passenger vehicle (PV) segment has been on a steady decline in its market share from 48% in 2014 to 18% in January-July this year. At the same time, petrol PVs saw their market share increase to around 68.4% in January-July 2023 from 42.5% in 2014.

Despite early exit from diesel space and late entry in the SUV segment, Maruti Suzuki, which is the largest automaker in the country, has around 22% share in the SUV market. The automaker offers vehicles in petrol and hybrid options. Meanwhile, Tata Motors announced facelifts in its premium SUV