With the implementation of BS6 norms from April 2020, we are seeing discontinuation of various old engine platforms. All OEMs are trying to come up with the more reliable & robust vehicles powered by highly efficient engines. Ever since CVs started making inroads into the emerging India diesel engines have ruled the CV Space. With BS6 coming in now the Question is will it will open doors for Petrol Engines in Small Commercial Vehicle segment?
Before we go further let us understand what this is all about – BS6 Diesel Engines Vs BS6 Petrol Engines
- Petrol Engines have never been a much sought for engine over to high Petrol Vs Subsidised Diesel pricing.
- Diesel Engines have higher thermal efficiency owing to their high compression Ratios. This makes Diesel Engines more fuel efficient when compared equivalent size Petrol Engines.
- Owing to Higher Compression ratio Diesel Engines are designed to be more sturdy.
Till time, Maruti Carry was the only Small Commercial Vehicle available in duel fuel option i.e. Petrol & CNG Variant in India. Come BS6, Tata Motors also joined the wagon with the launch of ACE GOLD PETROL. Only difference is Tata Motors has launched the new ACE solely with Petrol Option. Aftermarket fitment of CNG kit is still not explored. ACE is Tata Motors’s highest selling product across all tonnage points in TML. ACE launched in 2005 has cumulatively crossed 22L sales and is still going strong. Till BSIV ACE was available only Diesel and CNG Variants.
Why the need of BS6 Petrol Engines Now????
Migration of Diesel Engines to BS6 came with a huge technological intervention. The E.A.T.S System takes the pivotal role in the Diesel Engine. This has made a simple diesel engine complicated by leaps & bounds.
With reduced gap between the fuel pricing (Petrol & Diesel) makes a good value preposition for OEMs as well as customers to go for Petrol Pickups. Not to forget that Initial Acquisition cost also gets reduced with Petrol Engines.
What About Operational Costs???
Operational Costs remain same but the reduced acquisition cost benefit over Diesel vehicle will be a game changer.
BS6 Diesel Engines are too complicated with Exhaust After Treatment System (E.A.T.S.). Comparison of ACE Gold Petrol vs ACE Gold Diesel is as below. Few assumptions being considered for ease of calculations are –
- Though the funding on ACE is around 85% of the M.R.P. we are assuming 100% Ex. Showroom Funding for calculation.
- Registration cost & Insurance Amount for both vehicles being assumed same as of now.
- Assuming 15% lower Fuel Mileage for BS6 Petrol Engine vs its BS6 Diesel counterpart.
- Assuming the Spark Plug Replacement cost in BS6 Petrol Engine nullifying the Diesel Exhaust Fluid (DEF) cost in BS6 Diesel Engine for a year.
- Maintenance cost of both Diesel & Petrol Vehicles are considered same till the time we receive the AMC Pricing of both the vehicles.
- Tyre Life is considered same for both models.
With this new Variant from Tata Motors, even with assumed 15% reduced fuel mileage and 10% higher Price of Petrol over Diesel it will take 43 months to recover the excess amount Invested in Diesel Vehicle.
Petrol Vehicle makes good sense as this would enable self-drivers to buy ACE GOLD PETROL BS6 with lower EMI Burden & reduced Down Payment.
Till time Tata Motors is in the process of retailing vehicles to its customers. Let’s see how things work out for Tata Motors once the first-hand report on vehicle performance starts coming in.