India’s SUV Market Swings from Diesel to Gasoline Engines

Sales of gasoline-fueled SUVs in India have jumped to 13% from 2% of the segment four years ago as buyers move away from diesels, The Economic Times reports. The overall SUV market expanded 80% over the same period.

The Mumbai-based newspaper says the shift is being driven by India’s sales ban in the metro Delhi region for diesels that displace more than 2.0 liters. The ruling last December, which was aimed at improving the capital’s air quality, was upheld in January by India’s Supreme Court.

The Indian government is developing tighter limits for all diesels that would cut allowable emissions 95% by 2019.

ET notes the shift away from diesels began after the government dropped incentives that made diesel fuel significantly cheaper than gasoline. The newspaper points out that buyers also are moving away from smaller-displacement diesel SUVs not yet affected by the diesel ban. The same trend is occurring in passenger cars, where diesel’s share has dropped from about 42% three years ago to 34% currently.

Carmakers complain the Delhi ban unfairly ignores dramatic improvements made in recent years by costlier “clean” diesels. In the meantime, manufacturers are scrambling to adjust their sales mix to meet what some describe as a permanent shift in consumer behavior.