BAN ON DIESEL VEHICLES

1. Context

2. What is the background of this proposal?

• The panel’s recommendations come from the government’s stated aim to reduce greenhouse gas emissions and produce 40% of its electricity from renewables as part of its 2070 net zero goal.
• Diesel currently accounts for about 40% of India’s petroleum products consumption, according to Petroleum Planning & Analysis Cell estimates.
• The proposed ban will have a significant footprint many cities in India have more than 1 million people, including not just the metropolitan centers, but also smaller towns and cities such as Kota, Raipur, Dhanbad, Vijayawada, Jodhpur, and Amritsar. 

3. Who makes diesel cars in India?

• Maruti Suzuki, the country’s largest passenger vehicle manufacturer, stopped making diesel vehicles on April 1, 2020 and has signaled that it does not have plans to re-enter this segment.
• The diesel engine is, however, part of models sold by Hyundai and Kia, and Toyota Motor’s Innova Crysta range.
• Tata Motors, Mahindra, and Honda have discontinued production of 1.2-liter diesel engines; diesel variants are available only for 1.5-liter or higher engine capacity. 
• Since 2020, most carmakers have taken significant steps toward deleveraging their diesel portfolios.
• As a result, the contribution of passenger vehicles to overall diesel vehicle demand has fallen to just 16.5%, compared to 28.5% in 2013.

4. Issues with the Proposal

• It is not yet clear how the proposal for a ban, if accepted, will unfold and how practical it would be to implement.
• This is especially true in the case of medium and heavy commercial vehicles that are used for the transport of goods on highways and for buses playing in most Indian cities, where diesel is the mainstay.
• Even if the ban on diesel for commercial vehicles were to have a longer transition time, significant disruption could still happen.
• Around 87% of diesel fuel sales are in the transport segment, with trucks and buses accounting for about 68%.
• Uttar Pradesh, Maharashtra, and Haryana make up almost 40% of the diesel sold in India. While it seems easier at the moment to convert diesel trucks to compressed natural gas (CNG), there are certain limitations including CNG being used for shorter distances, and its lower tonnage carrying capacity.
• Also, many auto industry players argue that carmakers who have a presence in the diesel segment are already in compliance with current emission norms and have invested heavily to transition their diesel fleet from BS-IV to BS-VI emission norms.

5. What is the reason people prefer diesel vehicles?

• The higher fuel economy of diesel engines over petrol powertrains is one factor.
• This stems from the greater energy content per litre of diesel and the inherent efficiency of the diesel engine.
• Diesel engines do not use high-voltage spark ignition (spark plugs), and thus use less fuel per kilometer, as they have higher compression ratios, making it the fuel of choice for heavy vehicles.
• Also, diesel engines offer more torque (rotational or turning force) and are less likely to stall as they are controlled by a mechanical or electronic governor, thereby proving to be better for haulage. 

6. Why are carmakers moving away from diesel?

• The higher compression ratio of diesel engines means there are increased emissions of oxides of nitrogen (NOx), which is one of the main drawbacks of diesel engines versus petrol.
• The biggest blow for diesel, though, has been an external trigger the Volkswagen emissions scandal, which led to an increase in the negative perception of diesel across markets, including India.
• Also, the reason why Maruti Suzuki and other carmakers announced an exit from the diesel segment was the rollout of the new BS-VI emission norms from April 1, 2020, and the prohibitively high cost of upgrading diesel engines to meet the new standard.
• The government’s decision to leapfrog directly from BS-IV to BS-VI is the reason carmakers such as Maruti Suzuki cite the unavailability of retaining diesel in their portfolio.

7. The upshot of this proposal

• Most governments are moving towards phasing out diesel and petrol vehicles.
• India may face difficulties implementing a total ban on diesel due to heavy investments in transitioning to BS-VI and high diesel penetration in commercial vehicles.
• Liquifies Natural Gas (LNG) has the potential to replace diesel and CNG in heavy-duty vehicles, which could be a game-changer for the Indian logistics market, alongside an EV push and leveraging hydrogen as a motive fuel.
• Automakers suggest that the government's approach should be technology-agnostic, with stringent operational standards, and phasing out technologies that do not meet the standards rather than proposing a complete ban.