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Highlights
Diesel passenger vehicle sales are stable at 18% of the Indian PV market in the BS6-RDE emission phase.
31 products with diesel engines from 9 brands were compliant with BS6-RDE emission standards.
179,856 units of diesel PV were sold in Q2-2023.
Mahindra dominates the diesel PV market with a 46% market share.
SUV/Crossover products constitute 88% of the diesel PV market.
The Mahindra Bolero and Bolero Neo combined were the best-selling diesel products in Q2-2023.
Market
Since 1st April 2023, the BS6-RDE emission standard phase kicked in, and manufacturers were not allowed to produce non-compliant vehicles; however, they were allowed to sell BS6 vehicles produced before 31st March 2023.
With the stricter emission norms, only 31 products from 9 brands were compliant with the new emission standards, and the diesel fuel mix remained stable at 18% in Q2 2023.
Even in the luxury segment, the diesel mix came down to 38%, however, Mercedes, BMW, and JLR have over 50% diesel mix, which is especially beneficial for their large SUVs.
Manufacturer
Mahindra continues to dominate the diesel PV market, with its wide range of diesel UV products contributing 82% of its sales.
Hyundai-Kia’s combined market share stood at 28% as they share diesel engines across the product portfolio.
Toyota saved two large diesel engines for its UV range, contributing 42% of its sales.
Tata retained a 1.5-liter in-house-developed diesel engine with cost-effective LNT technology.
Jeep’s 2.0L diesel engine actually commands 9% market share as it does duty on MG and Tata vehicles too.
Size (length)
As vehicle size goes up, diesel becomes the preferred choice, as it offers better fuel efficiency, thus a lower running cost, and higher torque, which is especially beneficial for large-sized UVs.
Body style
SUV body styles dominate the diesel scene for monocoque as well as ladder-frame chassis. Other body styles have a limited share because of limited product availability.
Products
31 products were made BS6-RDE emission standards compliant by the 9 brands in India. Tata is the only one to show additional confidence in the hatchback segment with Altroz; the rest put their focus only on UV products.
1.5L & ~2L diesel engines are the mainstays of the Indian diesel PV market.
1.5L engines usually have cost-effective LNT technology for exhaust NOx after treatment, whereas others use more expensive SCR technology to remain NOx compliant.
Mahindra Bolero and Neo combined are the best-selling diesel products in Q2 2023 and have a diesel-only engine option.
The diesel mix is pretty high for Mahindra’s new product line-up : XUV 700 (70%), Scorpion N (94%) and Thar (79%).
Toyota has diversified the drivetrain for the Innova's new generation; however, diesel still has considerable traction.
In the case of the Toyota Fortuner, diesel still commands 97% mix.
Tata Nexon is the only product to have a diesel, petrol, and BEV drivetrain.
Mahindra Thar is the only product with two diesel engine options, smaller one for tax benefits.
Hyundai Creta and Kia Seltos have the key advantage of having diesel engines in their segment.