Diesel-powered luxury car sales decline; Buyers prefer EVs instead

Diesel vehicles accounted for 80% of the total luxury vehicle sales in India 5 years ago. In 2023, it dropped to 35%.

Sales of diesel-powered luxury vehicles have seen a steady decline over the past 5 years as more and more buyers transition to electric vehicles.

Diesel vehicles accounted for 80% of the total luxury vehicle sales in India 5 years ago. In 2023, it dropped to 35%, while sales of EVs increased to 6% of the total volumes in the segment.

The data suggests that more individuals are opting for EVs in the premium segment. This is down to several reasons, including the ease of installing charging points at home or offices.

BMW India had a 50% market share in the luxury EV segment in CY2023. The company expects EVs to account for 25% of its total sales in the next 2 years. The share of diesel declined from 65% four years ago to 36% in 2023.

EVs made up 4% of Mercedes-Benz’s total sales last year. However, the carmaker expects the share of electric vehicles to reach 20-25% in the next 4 years.

According to Balbir Singh Dhillon, Head of Audi India, manufacturers are likely to find it unviable to offer diesel options to customers, once the share of diesel in sales of luxury vehicles drops to 20%. Audi has already moved away from diesel and only has petrol and electric cars on offer.

Source: ET Auto