Small Diesel Car Sales Plummet, April-July Market Share Is 1.8 Percent

Hyundai Verna Diesel Long Term Review — Small diesel cars are finding less takers as time flies by

Sales of diesel variants of small cars and sedans have fallen to a paltry 1.8 percent during April-July 2020 states data, making it a new low in recent history.

This is a stark difference to the situation that was prevalent at the beginning of this decade, when, the gap in the price between petrol and diesel fuel was over Rs. 30/- (by May 2012) and diesel models had a 47 percent share in the car market.

Now though, the number has reduced to such lows due to several factors. The first factor is the high cost of diesel variants of cars, they cost over Rs. 1 lakh than their petrol counterparts in most cases, if not all.

Second is the very low price difference between the two predominant automotive fuels. Now, the difference is less than Rs. 7/- across the nation, bar some exceptions (if any).

Another issue that added to the small diesel car sales problem is automakers pulling out from the segment altogether. Maruti Suzuki, Volkswagen and Skoda, all offer petrol-only models now.

The high cost to upgrade engines from BS4 to BS6 emissions norms was said to be one of the main reasons for them to take the route.

Even in the SUV category, where diesel engines ruled the roost, the percentage held by diesel variants is just 42 percent in April-July 2020 as opposed to nearly 98 percent in 2011-12.

At present, CNG vehicles hold 14 percent sales in the cars and sedans market.
Today, there are 97 petrol-only models, 15-diesel only models and 45 models with both types of engines.