SaltWire's Atlantic regional weather forecast for September 12, 2023 | SaltWireMUMBAI - India's road transport minister on Tuesday warned local and foreign automakers to either cut production of polluting diesel vehicles or face higher taxes and levies, setting alarm bells ringing in the world's third-largest car market.
Petrol vehicles have been the top sellers in recent years - increasing their market share to around 68.4% in January-July 2023 from 42.5% in 2014, according to data from automotive market intelligence provider JATO Dynamics. In the luxury segment, though, which includes cars and SUVs made by Mercedes, BMW and Audi, petrol variants have accounted for 62% of sales so far this year, down from 68% in 2021, according to JATO Dynamics.Tuesday's warning from minister Nitin Gadkari targeted diesel carmakers, whose market share has seen a steady decline to nearly 18% of passenger vehicles in January-July this year from 47.9% in 2014.
Many private taxis, as well as many utility vehicles and trucks in India, still run on diesel, as their owners prefer fuel efficiency.