Hyundai plans to discontinue sales of diesel sedans in India

The country’s second largest carmaker Hyundai Motor India (HMIL) will stop offering diesel engine options in sedans amid increased consumer preference for petrol options in the passenger car segment and a steep spike in costs of diesel vehicles on account of the impending implementation of the second phase of BS-VI emission norms.

Sales of diesel vehicles in the passenger car segment, which comprises hatchbacks and sedans, currently stand at 1.4% (April-February FY23), down from 11.4% in FY20, shows data from industry body Society of Indian Automobile Manufacturers (SIAM). Among peers, Maruti Suzuki, Skoda-VW, Renault-Nissan completely exited the diesel vehicle segment in the local market during the transition to BS-VI standards in April 2020. Hyundai, however, said it will continue to produce diesel variants for its SUV range.

Tarun Garg, chief operating officer, Hyundai Motor India said, “Demand for diesel is limited to, but very strong in, SUVs. In fact, the bigger the SUV, the greater is the proportion of sales we register from diesel. In sedans, demand for diesel was clearly coming down.” He was speaking on the sidelines of the launch of the all new Verna.

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