Why Diesels Are Dying In India

Diesel cars were once the go-to choice for Indian car buyers due to their fuel efficiency and lower running costs. However, in recent years, diesel cars have been losing their charm and popularity in India. There are several reasons why diesel cars are dying in India, and in this blog, we will explore the major factors contributing to this trend.

Emission norms:

The Indian government has been taking steps to curb air pollution, and one of the ways to do that is by imposing stricter emission norms. In 2020, India implemented the BS6 emission norms, which mandate stricter limits on pollutants like nitrogen oxides, particulate matter, and carbon monoxide. Diesel engines emit higher levels of these pollutants than petrol engines, making it tougher for diesel cars to meet the new emission norms. As a result, diesel cars have become more expensive to produce, and their prices have gone up, making them less attractive to buyers.

Higher taxes:

Diesel cars are subject to higher taxes than petrol cars in India. This is because diesel is considered a ‘dirty fuel’ due to its higher emissions, and the government wants to discourage its use. As a result, diesel cars are taxed at a higher rate under the Goods and Services Tax (GST) regime, making them more expensive than petrol cars. This has led to a shift in consumer preferences towards petrol cars, which are more affordable.

Fuel price gap:

Diesel used to be cheaper than petrol in India, making diesel cars more cost-effective to run. However, in recent years, the price gap between the two fuels has narrowed down significantly. This is because the government has been increasing the tax on diesel to discourage its use. As a result, the running costs of diesel cars have gone up, making them less attractive to buyers.

Electric vehicles:

Electric vehicles (EVs) are gaining popularity in India, and their numbers are expected to grow significantly in the coming years. EVs are considered to be the future of mobility, and many car manufacturers are investing heavily in EV technology. As a result, buyers are shifting towards EVs, which offer several advantages over diesel and petrol cars, such as lower running costs, zero emissions, and lower maintenance costs. This has led to a decline in demand for diesel cars.

Resale value:

Diesel cars have a lower resale value than petrol cars in India. This is because the demand for diesel cars has been declining, and buyers are more interested in petrol and electric cars. As a result, the resale value of diesel cars has gone down, making them less attractive to buyers.

In conclusion, diesel cars are dying in India due to a combination of factors such as stricter emission norms, higher taxes, narrowing fuel price gap, increasing popularity of electric vehicles, and lower resale value. As a result, many car manufacturers are phasing out their diesel models and shifting their focus towards petrol and electric vehicles. It remains to be seen how the Indian car market will evolve in the coming years, but one thing is clear: the future is electric.

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