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In the last few years, the demand for diesel cars had decreased in the Indian automobile market due to stricter emission standards and the advent of alternatives to petrol, CNG and electric (EV) vehicles. But now the market trend seems to be changing once again. There has been a sudden surge in the popularity of diesel cars due to the growing concerns among car buyers regarding E20 (20% ethanol blended petrol) and the demand for heavy-duty SUVs.
According to the official data of Vahan and FADA, there has been a significant increase in both the sales and market share of diesel vehicles during June and the current financial year. Let us understand the figures of this comeback of diesel cars and the main reasons behind it from the perspective of an automobile and business reporter.
Sales figures: Huge jump in market share of diesel cars
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Increase in market share: The share of diesel cars in India’s passenger vehicle (PV) market was 18.08% in the financial year 2026 (FY26), which will increase in the financial year 2027 (FY27). 19.39% It is done.
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15% jump in monthly registrations: An increase of about 15% has been seen in monthly diesel vehicle registrations. While about 71,400 units were registered in the last financial year, this figure has increased in this financial year. 82,000 units per month Has reached.
3 biggest reasons for increasing sales of diesel cars
1. Customer concerns regarding E20 petrol and engine life
Many buyers are confused after the government made blending of ethanol in petrol (E20 petrol) mandatory.
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Although car companies (like Maruti Suzuki) claim that their new BS-6 Phase-2 vehicles are E20 ready, customers are concerned that prolonged use of ethanol blended fuel may affect engine parts and performance.
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Customers who want to drive their car for 8-10 years or more are preferring reliable diesel engines rather than taking risks.
2. Huge demand for SUVs in Rs 15 lakh+ segment
In the Indian auto market today, premium SUVs with a budget of ₹ 15 lakh or more are in highest demand.
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Strong Torque and Highway Performance: The diesel engine’s low-end torque and long-drive comfort on the highway are unmatched for large vehicles and SUVs.
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Tata Motors statement: MD of Tata Motors Passenger Vehicles Shailesh Chandra has confirmed that whenever SUV sales increase in the segment above Rs 15 lakh, customers naturally opt for diesel variants.
3. Diesel continues to dominate the luxury segment
luxury car manufacturing company Mercedes-Benz According to , their total sales in India are approximately 40% share is still diesel vehicles.
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According to the company, premium customers give priority to ‘total cost of ownership’ (running cost).
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Diesel and electric vehicles are still proving to be more economical than the high prices of petrol for drivers traveling long distances.