India’s road transport minister on Tuesday warned domestic and foreign carmakers to either cut production of polluting diesel vehicles or face higher taxes and fees, setting off alarm bells in the world’s third-largest auto market. From a report: Here are some facts about India’s auto market, the largest after China and the United States, where players like Maruti Suzuki, Tata Motors and foreign giants like Mercedes and Volkswagen operate. In India, about four million passenger vehicles were sold in the fiscal year that ended in March, according to data from the Society of Indian Automobile Manufacturers.
Gasoline vehicles have been the best sellers in recent years – increasing their market share to around 68.4% in January-July 2023 from 42.5% in 2014, according to data from automotive market information provider JATO Dynamics. Cost-conscious Indians prefer to buy petrol cars as they are cheaper than diesel cars, even though diesel cars offer better fuel efficiency. However, in the luxury segment, which includes cars and SUVs made by Mercedes, BMW and Audi, petrol variants account for 62% of sales so far this year, down from 68% in 2021, according to JATO Dynamics.
Tuesday’s warning from minister Nitin Gadkari targeted diesel carmakers, whose market share saw a steady decline to nearly 18% of passenger vehicles in January-July this year from 47.9% in 2014. But when it comes to luxury cars, diesel variants remain in vogue, with their market share rising to 33% so far this year from 31% in 2021.
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