The Rise and Fall of Diesel Vehicles in India: A Comprehensive Sales Analysis Since 1980

Since the introduction of diesel vehicles in India in the 1980s, they have played a significant role in the country's automotive industry. However, over the years, the sale of diesel vehicles in India has witnessed various ups and downs due to the evolving government policies and the changing consumer preferences.

In the early 1980s, the sale of diesel vehicles in India was mainly dominated by commercial vehicles such as trucks and buses. The primary reason for this was the lower cost of diesel fuel compared to petrol, making it an ideal fuel for heavy-duty vehicles. As a result, diesel engines gained popularity in the commercial vehicle segment and accounted for a significant share of the overall vehicle sales in the country.

However, the sale of diesel passenger cars was not prevalent at the time, primarily due to the lack of consumer awareness and limited availability of diesel engines in the passenger car segment. It was not until the late 1990s that diesel passenger cars began to gain popularity, primarily due to the introduction of fuel-efficient diesel engines by manufacturers such as Maruti Suzuki, Tata Motors, and Mahindra & Mahindra.

In the early 2000s, diesel passenger cars started to gain momentum in the Indian market, mainly due to their fuel efficiency and lower running costs. With the growing demand for diesel cars, many manufacturers began to focus on producing diesel engines, resulting in increased availability and improved performance.

One of the most significant milestones in the Indian diesel car market was the launch of the Maruti Suzuki Swift diesel in 2007. The car quickly became popular among consumers, thanks to its fuel efficiency and stylish design. The Swift diesel was a game-changer for Maruti Suzuki, which had earlier focused on producing petrol-powered cars.

The success of the Swift diesel prompted other manufacturers to launch diesel versions of their popular models. Hyundai introduced the i20 diesel in 2009, which quickly became a best-seller in its segment. Ford launched the Figo diesel in 2010, followed by the Fiesta diesel in 2011.

The popularity of diesel cars continued to grow in India until 2015, when the Supreme Court of India banned the registration of diesel cars with an engine capacity of 2.0 liters or more in the National Capital Region to combat air pollution. This resulted in a significant drop in diesel vehicle sales in the region.

The ban on diesel vehicles in the National Capital Region prompted the government of India to introduce various measures to discourage the sale of diesel vehicles and promote electric vehicles. In 2017, the Goods and Services Tax (GST) on electric vehicles was reduced to 12%, while the GST on diesel vehicles was increased to 28%, making electric vehicles more affordable.

In recent years, the sale of diesel vehicles in India has witnessed a decline due to environmental concerns and changing consumer preferences. The introduction of stricter emission norms has also impacted the sales of diesel vehicles, as manufacturers have had to invest heavily in upgrading their diesel engines to comply with the norms.

Despite the decline in diesel vehicle sales, the Indian automotive industry continues to produce diesel vehicles, primarily for the commercial vehicle segment. The demand for diesel-powered trucks and buses remains strong, thanks to their superior fuel efficiency and lower running costs.

In conclusion, the sale of diesel vehicles in India since the 1980s has witnessed many fluctuations due to changing government policies and consumer preferences. While diesel vehicles were initially popular in the commercial vehicle segment, they have gained popularity in the passenger car segment over the years. However, recent environmental concerns and government policies have resulted in a decline in diesel vehicle sales and an increased focus on electric vehicles. The future of diesel vehicles in India remains uncertain, but the Indian automotive industry is likely to continue producing diesel vehicles to cater to the demand of the commercial vehicle segment