Less Than 2 Out Of Every 10 New Cars Have A Diesel Engine

Diesel-powered passenger vehicles have witnessed a gradual decrease in their percentage in the total market, from 60% in 2011 - 2012 to 42% in 2016, 32% in the current fiscal year and 15% last month. This decrease amidst the already slowly-developing market can be mostly explained by the fuel prices. 

While the recently launched 2020 Hyundai Creta is available with a diesel engine option, the South Korean carmaker is now more focussed on petrol powertrains as it has started offering its T-GDI turbo-petrol engine on many cars in its portfolio

Also read - End of an Era for Diesel Cars?

In May 2011-12, the gap between petrol and diesel price is the highest at INR 31, which was decreased to INR 18.5 in 2013, under INR 15 in 2015-17 and INR 10.1 in 2017-18. This gap was INR 7.1 last year and INR 6.5 this year. In numerous states such as Chattirgarh, Goa, Odisha and Gujarat, petrol is even less expensive than diesel. Some companies which used to focus on diesel vehicles are gradually transforming to petrol for entry-level vehicles.

President-auto sector of Mahindra & Mahindra, Rajan Wadhera stated,

“Diesel vehicles are becoming expensive due to the technology that goes in to meet the BS6 emission norms. As a result, the entry-level segment is shifting to gasoline. The value buyer is moving to gasoline but the fun, more premium buyer still wants the high torque diesel,”

While the 1.2-litre motor of the company will have only petrol option, the 1.5-litre one will be both petrol and diesel.

Also read - After Maruti Baleno, Even Hyundai Elite i20 Loses Its Diesel Engine

The cost/km for petrol vehicles is around INR 3.4 - INR 3.5 while this cost of diesel ones is INR 2.7 - INR 2.8. Considering the INR 1.2 - INR 1.8 lakh cost to upgrade diesel motors to be BSVI compliant, some car companies are considering discontinuing their production altogether. Nevertheless, in spite of oil burners’ decreasing popularity, car makers still hesitate to shelve them all together. Maruti Suzuki, which has alraedy discontinued all its diesel-powered vehicles’ production, was the first manufacturer to take the no-diesel route. 

Executive director of the Marketing & Sales Department, Maruti Suzuki India stated,

“Some customers may still prefer diesel and if we find a preference for diesel, then Maruti will consider a BS6 option in larger diesel vehicle category.”

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The above comment from Maruti Suzuki, which has been the largest carmaker in the country, is in accordance to its decision of discontinuing all the diesel-powered cars in its portfolio. However, the manufacturer has repeatedly confirmed that it will restart production of diesel vehicles in case there's sufficient demand.