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Petrol Car Sales reach an all-time high!

Petrol mix in new passenger vehicle sales has reached to 83% in 2020!

Comes BS6 emission norms era and supply-demand equation has changed dramatically in 2020. Petrol is now a dominant fuel in all new car sales. The complexity involved in exhaust gas treatment of diesel engine to meet BS6 criteria has led to a higher price gap between petrol and diesel engine purchase price for customers, and the shrinking petrol-diesel price gap is no relief either.

Indian Passenger Cars Fuel Mix Trend

- Diesel was the dominant fuel in 2012 and almost 54% of the cars sold in India used to run on Diesel!

- Since 2012, Diesel Car Sales have dipped in every consecutive year and is only 17% in 2020! (Apr'20-Dec'20)

- Petrol Car Sales have shot up to a staggering 83% in 2020. This is primarily led by Maruti Suzuki which has shunned diesel engine completely from its portfolio. There are 5 other OEMs that have followed Maruti's path and offers only Petrol option.

OEMs with only Petrol models in the portfolio in FY2021 -

· Renault-Nissan and Skoda-Volkswagen has shunned diesel engines completely and switched to all petrol portfolio.

· In past both the groups have developed and sold, much-loved diesel K9K and TDI series engines respectively.

· But reluctance for whatsoever the reason may make them suffer, particularly in the SUV category, where diesel is still the preferred fuel.

OEMs with Mixed Fuel Options in the Portfolio -

· Mahindra’s UV portfolio was largely driven by diesel engine (88%).

· But things may change, as Mahindra will put mStallion range of engine in upcoming XUV 500.

· Thar already has a 13% petrol mix with an all-new petrol engine.

· Toyota’s non-Maruti sourced portfolio is completely diesel driven.

· Ford’s high diesel mix is due to the 1.5L diesel engine, which is quite impressive and easily finds quite many fans too.

· Hyundai-KIA’s LNT based 1.5L is quite cost-effective and doing quite well for the SUV portfolio.

· Tata’s diesel mix for 1.5L is at quite a low now, and upcoming petrol Harrier and Altroz BEV may reduce the mix further.

· Honda’s diesel mix is driven by WRV and Amaze, that too because of the availability of automatic transmission on Amaze and sunroof on WRV.

· Diesel engine could prove to be handy for Honda if only, they get proper crossover/SUV for India.

· MG’s petrol mix is high due to fact that it doesn’t have a diesel automatic transmission on Hector.

· So, if someone wants the convenience of automatic Hector, one needs to settle down for petrol DCT or new CVT, now.

· From 2020, Jeep’s customer too had diesel automatic choice, but it comes at a huge price premium, as it is always coupled with the AWD system.


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