Roaring SUV sales puts diesel back on the growth path
SUV sales are driving the share of diesel with nine out of ten diesel-powered vehicles sold in the country this year being SUVs. This has helped boost the share of diesel in the domestic passenger vehicle market for only the second time in 13 years at a time when the auto fuel is getting increasingly outshined by petrol, CNG and electric vehicles.
The share of diesel in total PV sales is estimated at 18% as of the first half of December 2024, up from 17.8% in 2023, according to Jato Dynamics, a market research, data and analytics firm. Diesel vehicle sales climbed to 774,000 units from 738,000 units during this period. SUVs have a 55% share of total car sales this year, up from 48.4% in 2023.
This is the second instance since 2011 of diesel improving its share in the Indian passenger vehicle market. It last rose in 2022 to 19% from 13% in 2021.
«What we're seeing is diesel's evolution into a specialised solution, not its decline. The technology particularly suits mid- to high-end SUVs, where its low-end torque proves ideal,» said Ravi Bhatia, president, Jato Dynamics.
In addition to being fuelled by the growing SUV sales where diesel is a preferred choice, improved diesel technology and better road infrastructure is also stoking demand. More than half of passenger vehicles sold in the local market are now SUVs.
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