The stringent emission regulations, considering the extent of pollution and air quality factors, has impacted the sale of diesel-powered passenger vehicles in India.
While diesel continues to remain an attractive proposition for Indian consumers, it has also seen a drastic shift in the pattern as consumers are shifting to other options like petrol followed by CNG petrol, hybrid, and electric.
While the share of diesel in segments like hatchbacks and sedans has declined to nearly zero per cent, it has come down in the SUV segment to 33 per cent in the current year compared to 97 per cent in 2013-14.
At such a time when the stances of the government have been changing to reduce emissions while consumers and automakers are also changing preferences, it is yet to be seen about the fate of diesel and whether it is now viable to buy a diesel car in India.
Should one buy a diesel car in India?
While diesel is still the fuel for the common man who uses these vehicles for regular travelling, the perception is still positive for SUV buyers. However, the perspective is different for hatchbacks and sedans as they usually prefer petrol, CNG, electric, or hybrid proposition over diesel.
That being said, the various factors that have made an impact on the decision are the overall cost of ownership, narrowing the gap between the prices of petrol and diesel, improved mileage of modern petrol cars, and fear of a diesel ban. In such a situation, if one is planning to buy a diesel car, one must remember a few key points like diminishing resale value, high upfront and maintenance costs, risk of being absolute during ownership, and high insurance.
On the other hand, the tightening emission norms by the government have also propelled automakers to make more investments in research and development of modern diesel engines, thus resulting in diesel cars being left with higher costs compared to their petrol counterparts. While the maintenance cost for diesel cars is increasing faster than for petrol models, they also demand higher insurance costs which impacts the overall cost of ownership
When it comes to the stance of Indian policymakers on fossil fuel powertrains, especially diesel, it has created a dilemma among consumers who still consider diesel as the preferred fuel.