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Indian Passenger Vehicle Market Fuel Analysis - Q1 2021 (Jan-Mar)

In the BS6 era, 82 percent of new cars sold in Q1-2021 has had petrol engine. Diesel engine now accounts for 17.6 percent only. This is largely due to some manufacturers, who decided to completely switch to a petrol engine, as they could not come up with cost-competent BS6 compliant diesel engine on time.

Electric cars too have made some space for themselves at 0.3 percent, though in the nascent stage, but surely, the future is electric. Toyota Vellfire (CBU) and Camry (CKD) are the only hybrids, contributing to 0.02 percent of the overall mix.

Petrol v/s Diesel v/s Electric v/s Hybrid Car Sales in India -

Diesel Engine Contribution OEM wise -

  • Hyundai-KIA duo has emerged as the largest manufacturer of diesel engines, though Mahindra is the largest on a standalone basis!

  • Mahindra still has too much dependence on diesel engine portfolio

  • But the success of Thar petrol (23 percent mix) can change the same in future

  • For Honda, the mix has reached too low to sustain in long term, unless, they bring in diesel SUV/Crossover

  • Tata, for now, is too much dependent on FCA’s for 2L diesel engine, which is selling more than its in-house 1.5L engine

Body Style Fuel Mix Analysis -

  • SUV/Crossover body style still has strong dominance of diesel engine

  • Diesel hatchback demand has sunk too low to sustain for some manufacturers

  • Low diesel penetration in the sedan segment is mostly due to some supply-side issues – either no diesel option or non-availability of automatic transmission

  • Except for Toyota Innova, no other diesel MPV is selling so well, but then its more product and price related issue (Kia Carnival and Mahindra Marazzo)

Electric Cars Sales -

  • Tata Motors continues to dominate the electric car segment for now

  • MG eZS too had a good run and captured a 26 percent share in the current niche market

  • Nexon electric now contributes 6 percent to the overall mix

  • Diesel will surely have a hard time in the coming future

  • Tata Motors has shown the right way with Nexon BEV – work on its own to create demand, rather than to wait for demand

Sales Performance of products with Diesel Engine -

  • Hyundai Creta is the best-selling diesel car in India, followed by Mahindra Bolero and Toyota Innova

  • Diesel engine mix and size of vehicle has a very strong correlation

  • Preference shift to diesel as the size grows

  • Diesel mix has reached quite a low of 7 percent for the small car segment (sub-4m)

  • New entrant need not bother about diesel engine in the small car segment

  • Rather should focus on electric as an additional drivetrain for future

  • Mahindra Thar had quite a successful run with such thirsty 2L petrol as well

  • But then it is equipped with automatic and it's refined and good for off-road enthusiast from NCR (10-year rule)

  • In the large SUV/MUV segment, diesel still rule the roost, with MG Hector being the only exception (as it doesn’t have diesel AT)


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