India’s second-largest carmaker Hyundai is betting big on a fuel others are abandoning

Tarun Garg, COO of Hyundai in India, emphasized the company’s success with diesel variants and its determination to maintain a competitive edge. This decision stands out as Hyundai’s key rival, Maruti Suzuki, has completely abandoned the diesel category, with other brands like Skoda, VW, and Audi following suit.

“Demand remains strong for our diesels. Consider this: if the waiting period on our petrol models is around four weeks, that on diesels is 10-12 weeks,” Garg told TOI. Hyundai continues to offer diesel engines for larger SUVs, a strategy that pays off, with 42% of total Creta sales, 66% of Alcazar sales, 61% of Tucson sales, and 21% of Venue sales being attributed to diesel variants. Garg assured that Hyundai’s diesel portfolio will expand with the introduction of more diesel-powered vehicles.

Several factors contribute to the enduring popularity of diesel, particularly for large off-road vehicles. “Buyers of large SUVs often opt for diesel due to its superior fuel efficiency, offering around 30% better mileage compared to petrol counterparts. Additionally, diesel engines provide robust initial torque, making them effective for off-roading,” Garg said.
While Hyundai’s diesel share has decreased from 26% to 20% since last year, it remains stable at this level.Garg emphasized that demand for diesel vehicles continues to thrive in specific states, dispelling the notion of a widespread withdrawal from this fuel source. Hyundai’s unwavering commitment to diesel reflects its dedication to meeting the diverse needs of its customer base.