The country’s largest car maker Maruti Suzuki India (MSI) is looking to enter the diesel segment once again next year as the vertical continues to draw a lot of customers especially in the high selling SUV and multi-purpose vehicle segments, according to industry sources.

The auto major had discontinued diesel models from its portfolio with the onset of stricter BS-VI emission norms from April this year.

According to the sources, MSI has initiated the process to upgrade its Manesar-based powertrain plant so that it can start rolling out BS-VI diesel engines starting middle or festive season next year.

Sources also confirmed that the company plans to utilise the BS-VI compliant diesel powertrain in the Ertiga and Vitara Brezza to start with in the domestic market. The auto major, however, did not specify any reasons for re-entering the diesel segment.

An MSI spokesperson said in a statement: “We cannot give any guidance on future technologies.”

Sources said the company is looking to upgrade the current set-up at the Manesar plant, which earlier used to churn out its in-house developed BS-IV compliant 1,500-cc diesel engine.

MSI had used this powertrain briefly in its mid-sized sedan Ciaz and Ertiga before deciding to pull the plug on the diesel segment.

The company’s other models such as Vitara Brezza, Dzire, Swift, S-Cross and Baleno at that time used to be powered by the Fiat-sourced 1,300 diesel unit. MSI’s entire model range is at present powered by BS-VI compliant 1 litre, 1.2 litre and 1.5 litre petrol engines. The company sells CNG versions of some of the models.

On April 26, 2019, MSI chairman R.C. Bhargava had announced that the company will phase out all diesel cars with effect from April 1, 2020.

He reasoned that small diesel cars would see the maximum impact in terms of pricing with the coming of BS-VI engines. He had, however, added that if there was a demand for diesel cars the company might cater to that demand.

“Depending on how customers react to BS-VI diesel cars if we find there is a market of BS- VI diesel cars we will develop such a car within a reasonable period of time,” Bhargava had said.

In July this year, MSI executive director (sales and marketing) Shashank Srivastava had hinted that the company may look at having a bigger BS-VI diesel engine at a later stage if there were enough customers for diesel-powered big SUVs and sedans.

“Customers who do not care about economics for running the car may still be buying the diesel cars and for that the company has said it is watching the market very closely,” Srivastava had said.