Why Has BMW Been Forced to Change its Cars to Petrol?

More and more countries are realising they have a problem with their emissions. As a result, we’re seeing an increasing amount of regulations on industrial emissions, transportation and even car manufacturing. This time, it’s BMW who have suffered. But while normally it’s petrol that’s being prohibited, in this case, the regulations have actually prompted a switch to the commonly used fuel.

The problem in India

In the National Capital Region (NCR) of Delhi, there is a serious problem with pollution. The World Health Organisation (WHO) put it top of the pile in fact – the most polluted city in the world for 2014. Following that awful title, they’ve clearly made some efforts to change it. In 2016, they were ranked 11^th – a slight improvement.

One such change was their ban on diesel cars with an engine capacity exceeding two litres. Tough measures, but it didn’t last. The Supreme Court of India, who placed the ban on cars with this larger engine size, has since lifted the ban – just six months later. Following this reversal, they have introduced a levy on these cars to be paid by the manufacturers. The one-time fee will be equal to 1 percent of the car’s ex-showroom price.

Responding to the changes

Of course, as a producer of luxury cars, some of BMW’s models pass the 2 litre capacity. In the six months the ban was in place they lost a lot of business. And even now, there is a lingering effect in business. Why? Firstly, with the levy they either have to make a small loss on the car sales or pass this on to the customer, which could put them off.

The whole thing has left customers feeling uncertain too. Could it happen again? It seems not many people want to buy a diesel car over two litres in case a similar restriction comes in. Their car would be un-driveable and unsellable. To counter the problem, BMW has decided to produce petrol alternatives to cars over two litres, which includes the BMW 3 series Gran Turismo. Other models will be introduced over time, but the company plans to phase in the changes.

Do we need to avoid diesel?

One issue manufacturers have is that the regulations, however compromised, are discouraging consumers by portraying diesel as a bad fuel. Diesel is more efficient from petrol, but does it have to be dirty like its reputation suggests? More precise and cost efficient analysis of diesel is one step in improving the situation, as discussed in ‘Precision + lower operation cost + minimum initial investment = CID 510’.