May 9, 2022
Blog Admin
SUVs pushing up diesel demand
Since sports utility vehicles (SUVs) have become the preferred choice of Indian customers, the demand for diesel engines has also sustained.
Auto analysts are of the view that the rising sales percentage of sports utility vehicles —from 13% in FY20 to 16.4% in FY21 to about 22% in FY22 — has sustained the demand for diesel engine.In FY21, the sales share stood at 75.8% (petrol), 16.4% (diesel) and 6.1% (CNG).
This shows that while the sales share of petrol cars has dropped by 3.6 percentage points in FY22, that of diesel cars has increased by 2 percentage points and that of CNG increased by 2.5 percentage points.
Buyers of midsize and large SUVs generally prefer diesel engines due to their comparatively higher torque —or pulling power — and hence offering a more fun-to-drive character,
The New SUV launches by Hyundai (second-generation Creta and Alcazar), Kia (Sonet) and Mahindra & Mahindra (second-generation Thar and XUV700) have led to sustained diesel demand.
In the compact SUV segment, the sales share of diesel-engine variants is 35-40%, but this rises to 55-60% in the midsize SUV segment, and even upwards in the large SUV segment.
Essentially, the more expensive the car, the higher is the diesel variants’ sales percentage within that model.
There are many markets where diesel outsells petrol in cars that cost above Rs 10 lakh. Tarun Garg, director, sales & marketing, Hyundai Motor India, told BigGaddi.com that while 50-55% of all-India Creta sales (a midsize SUV priced over Rs 10 lakh) are of diesel-engine variants,
Hardeep S Brar, vice-president & head, marketing and sales, Kia India, said while 35% sales share of the Sonet (a compact SUV) is diesel, this rises to 45% in the Seltos (a midsize SUV).