Diesel Market Share Skids to 14% in India

Diesel sales captured 14% of India’s passenger car market in April-June, down from a peak of 47% seven years ago, The Economic Times reports.

Figures from the Society of Indian Automobile Manufacturers show the decline has affected all segments, including SUVs, which previously were almost entirely diesel-powered. SIAM says quarterly sales of gasoline-powered SUVs reached 23% in the fiscal first quarter this year from 3% in the same period in 2013.

India’s flight from diesels has been hastened by consumer uncertainty over government policy. In December 2015 the country banned the sale of vehicles in the greater Delhi region that were powered by diesels that displace more than 2.0 liters.

India’s Supreme Court lifted the ban eight months later. But the high court also imposed a 1% sales surcharge on affected vehicles to help fund government environmental initiatives.

Two years ago India proposed to halt the sale of piston-powered vehicles by 2030. The country also is pushing for cleaner fuels ahead of tougher emission standards that will go into effect in 2020.