Diesel cars have been under the scanner for a long time now but the car manufacturer Mahindra & Mahindra are confident that the sales rate will be back up again in the times to come. The sales figure has not been particularly kind with a drop in UV market share from 55.10 percent in FY2012 to 25.38 percent in FY2018. The shift of preference from diesel to petrol powertrain have hit the manufacturer hard as their mainstay has been diesel-engined vehicles. The share of diesel PVs has gone down to 23% as compared to 50% about 5 years ago.
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However the car manufacturer denies any major concerns as of now. As per emission norms all OEMs have to sell only BS VI engined-vehicles from April 1, 2020 and this rule may change the way diesel cars are perceived. According to Rajan Wadhera, president, automotive sector, Mahindra & Mahindra, this norm requires every fuel used in cars to be clean thus making BS VI diesel a cleaner fuel compared to petrol by 2020. Not only that the diesel cars will also have a higher fuel efficiency of 15 kmpl as compared to 9kmpl if petrol vehicles. However with all these upsides comes a downside as well in the form of increased cost of diesel cars due to significant development and R&D costs. To keep a strong hold in the PV market Mahindra has come up with a two-pronged strategy for the urban and rural markets to increase engagement, sales and satisfaction that will help it regain its leadership.