Diesel’s Renewed Relevance


Diesel in India is not dying; it is a maturing technology finding its best fit roles. As SUVs surge, GST eases prices, and cleaner tech matures, diesel is shifting from mass fuel to specialized strength, powering the segments where India needs it most.

22/12/2025

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MUMBAI
Diesel has been a major part of India’s mobility story for decades, loved for its strong torque, fuel efficiency on long drives and durability in heavy use. Recently the conversation has shifted to cleaner fuels, EVs, CNG and new rules have changed choices for buyers and OEMs (Original Equipment Manufacturers). But if you look closely, diesel is not disappearing, in fact it is evolving. Here’s a deep dive look at how diesel is reshaping itself into parts of the market where it truly adds value. Where Diesel Stands Today In passenger cars, diesel vehicles share has come down from the peaks it touched a few years ago, but it still represents a meaningful slice of the market, with recent months showing diesel accounting for about 16 to 18% of passenger vehicle volumes. That share is concentrated in larger vehicles like SUVs and pickups, and in manufacturers that continue to focus on diesel powertrains.  At the same time, diesel remains the backbone of commercial transport such as trucks, buses, tractors and many other commercial use vehicles that still run on diesel. Diesel demand for freight and construction activity is a direct link to the real economy, and that demand stayed materially

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