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Petrol car sales eclipse diesel in the first half of FY2021

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Petrol energy has eclipsed diesel in the Indian market, and it is a world pattern too. Be it the implementation of the stringent BS6 emission norms from April 2020, which noticed some carmakers pull out of the diesel house, or the fast-diminishing worth differentials between diesel and petrol, demand for diesel-powered autos has toppled in the passenger car (PV) phase over the latest previous in favour of petrol autos.

  • Share of diesel PVs has declined
  • Compact automobiles have registered 90 % petrol sales
  • Diesel demand continues to be vital in mid-size SUV phase

To additional amplify confusion in  shopper buy selections, rulings similar to a 10-year lifetime of a diesel car in the National Capital Region, in comparison with the 15-year validity for petrol automobiles, in addition to the increased upkeep value of a posh BS6 diesel car, over its petrol counterpart, are making many potential diesel car patrons go for the safer selection of petrol. 

Market shift from diesel to petrol PVs

The marked shift in shopper and market demand, evident in the previous few years, has come to the fore in the five-month April to August interval of FY2021. Petrol-powered PVs have witnessed a pointy rising demand from 66 % in April-August 2019 to 81 % in April-August 2020. In comparability, demand for diesel PVs has shrunk considerably from 34 % to 19 %. Total PV sales throughout this 5 month interval have been 5,52,429 models (April-August 2019: 10,91,928 / -49 %) in a market severely impacted by the pandemic.

A fast look at the PV sales information from the previous 4 fiscals, reveals that the share of diesel PVs has shrunk from 40 % in FY2017 to 19 % in April-August 2020, and that of petrol has soared from 60 % in FY2017 to 81 % in April-August 2020.

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Let’s take a more in-depth take a look at the key PV sub-segments to get a greater overview of the scenario. The April-August 2020 sales figures additionally should be seen in gentle of the dampened market situations in the first few months of FY2021.

Passenger car sales (compact automobiles): Length as much as 4,000mm, engine displacement as much as 1,400cc

This is the place the meat of the market lies and it’s a fast-growing sub-segment inside PVs, with a slew of choices together with B, B+ hatchbacks in addition to compact sedans.

Compact passenger automobiles offered 2,30,048 models between April and August 2020 (April-August 2019: 5,20,321 / -55.eight %) with as a lot as 90 % sales coming from petrols.

High-volume automobiles similar to the Maruti Suzuki Swift, Baleno, Dzire, Hyundai i20, Xcent, Tata Tigor and Volkswagen Polo and Ameo have merely vanished from having a diesel choice in their choices, thereby creating an enormous void.

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Passenger car sales (mid-size sedans): Length as much as 4,500mm, engine displacement as much as 1,600cc

The phase consists of some bestsellers like the Honda City, Hyundai Verna, Maruti Suzuki Ciaz, Volkswagen Vento and the Skoda Rapid. While Honda and Hyundai have caught to providing diesel engines, the others have a petrol-only portfolio in the BS6 regime.

The Honda City noticed 1,533 unit sales of diesel automobiles between April and August 2019 flip to zero diesel sales throughout the identical interval this 12 months, regardless of the new technology car launched in July 2020, persevering with the 1.5-litre iDTEC diesel engine. Petrol sales, in comparability, stood at 4,977 models (9,393 / -47 %).

The Hyundai Verna, for which the 1.5-litre diesel is a most popular buyer selection attributable to its computerized transmission choice, noticed a big drop in demand and offered 1,819 models in April-August 2020 interval in comparison with 5,015 models final 12 months, thus recording a 64 % decline. At the identical time, sales of the petrol Verna have been 3,502 models (6,242 / -44 %).

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Utility car sales: Length as much as 4,000mm, worth lower than Rs 20 lakh

The UV phase, which is the strongest accelerating sub-segment inside the PV house, can also be immediately seeing the ramifications of the decline in diesel demand.

From 10,025 models in April-August 2019, the Ford EcoSport has offered 4,356 diesel variants, a 57 % drop. Petrol EcoSport sales totalled 2,382 models (6,043 / -61 %) throughout the identical interval.

The Honda WR-V has misplaced the diesel battle from promoting 3,053 models to a mere 785 models between April and August 2020, an enormous 74 % downfall. Petrol WR-V sales in comparability, stack at 1,449 models (3,844 / -62 %).

The Tata Nexon has additionally witnessed a considerable drop in diesel sales with volumes dropping from 4,787 models to 737. These have been substituted by the petrol’s 2,660 models (7,865 / -66 %) in addition to the Nexon EV which went dwelling to 266 patrons.

On the different hand, the newly launched Kia Sonet is betting large on diesel with the firm going so far as providing a first-in-segment diesel computerized choice in its line-up too.

The Maruti Suzuki Vitara Brezza and the Hyundai Venue have seen the most vital and important impression of the plummeting demand for diesels. While the Brezza fully misplaced a big 41,848 models of BS4 diesel variant sales to 19,824 models of the petrol-only BS6 mannequin sales, the Venue noticed an incredible drop in diesel demand from 14,820 models to six,238 models, a 58 % year-on-year (YoY) decline. Sale of petrol-powered Venues, nonetheless, moved to 14,134 models (19,919 / -29 %).

The diesel-favourite Mahindra XUV300 too recorded a pointy decline in diesel demand from 15,903 models in April-August 2019 to five,944 models throughout the identical interval in 2020 – a noticeable 63 % YoY decline. Petrol-engined XUV300s, nonetheless, went dwelling to 2,634 patrons (5,175 / -49 %).

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Utility car sales: Length as much as 4,400mm, worth lower than Rs 20 lakh

The midsized crossover phase, at current, can also be one of the hottest areas to be in the Indian PV market. Products like the Hyundai Creta, Kia Seltos, Mahindra XUV500, Maruti Ertiga, XL6 and S-Cross, MG Hector and the Tata Harrier entice an enormous chunk of patrons to their respective carmaker’s showrooms, given the market’s rising affection for SUVs.

Between April and August 2020, out of the 2,21,251 UVs offered, these mid-sized UVs comprised 43 % of the complete volumes at 94,398 models. While the sub-segment can also be seeing purchaser desire shift in direction of petrol, it’s nonetheless comparatively proof against the common market pattern, given these autos are additionally thought-about from a long-distance driving perspective.

The phase stalwart Hyundai Creta, has maintained diesel sales at 20,844 models between April and August 2020, in comparison with the 28,071 models offered in April-August 2019. The SUV is doing wonders for the Korean carmaker and raked in 11,758 models final month alone. Petrol-engined Cretas have additionally maintained their numbers at 12,882 models (12,390).

Hyundai’s sibling, Kia Motors India can also be providing the Kia Seltos with the identical diesel and petrol powertrains and noticed demand for petrol drive barely forward of diesel at 15,302 models (3,635 / +322 %), in comparability to the 12,348 diesel variants offered between April and August 2020 (2,610 / +373 %).

The MG Hector’s 1.4-litre turbocharged petrol variants have additionally witnessed sales in sync with the market pattern, whereby, the demand for petrol SUVs grew 166 % from 1,477 models to three,935 models throughout the interval, whereas the diesel recording a 64 % enchancment in numbers at 3,359 models, in comparability to final 12 months’s 2,049 models.

So, with the gradual onset of EVs, in addition to a heightened concentrate on atmosphere sustainability driving authorities insurance policies and a push in direction of cleaner mobility that has clearly created a unfavourable aura round diesel, the demand for mass-market oil-burning autos is dipping by the day. With carmakers voluntarily opting out of the phase, is there actually a future for diesel automobiles?

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The case for diesels

Diesel has been, considerably, a demonised gas. Diesel engines are extra economical than petrol engines, which nonetheless haven’t caught up regardless of advances like direct injection. Diesel engines are nonetheless much more environment friendly than petrol engines at changing gas to mechanical power. In reality, together with the power benefit of the gas itself, diesels are as much as 40% extra environment friendly at doing that.

Diesel generates much less CO2 as a result of it’s extra environment friendly and burns much less gas. It does create extra oxides of nitrogen (NOx) inside the combustion chamber however that is cleaned up by exhaust after-treatment, similar to SCR (selective catalyst discount), and the newest diesels produce extraordinarily low quantities of NOx. While the reality is that BS6 fossil fuels are very clear.

Market actuality and shopper notion of diesel although, in latest instances, are having a say in car sales. Take an in depth take a look at the fuel-wise car sales cut up throughout the passenger car, utility car and van segments and the writing is on the gas wall.

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Also see:

Automotive retail sales up by 11.66 % in September

Passenger car sales see sharp 35 % uptick in September 2020

Two-wheelers register robust sales in September 2020

Electric two-wheeler sales up 72 % in September 2020

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