Diesel will be the first traditional powertrain technology to vanish from manufacturers’ portfolios globally, according to KPMG Global Automotive Executive Survey 2017. The trend, KPMG pointed out, is quite alarming for several manufacturers and regions considering their expected diesel penetration rates for 2023, such as Indian manufacturers with an overall diesel share of more than 60 per cent.
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To be sure, following deregulation in diesel prices in 2012 and the Supreme Court’s stricture on diesel cars in December 2015, share of diesel powered cars in India have been coming down steadily. Share of diesel cars dropped to 26 per cent in the first eight months of the current fiscal from 37 per cent a year ago, according to industry body SIAM.
The rapid shift prompted automakers, particularly homegrown ones like Mahindra and Mahindra Ltd and Tata Motors Ltd, which relied heavily on diesel in India, to revisit the engine technology in favour of gasoline. Both firms are now also offering petrol option in their newly-launched models.
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