Hyundai discontinues diesel sedans ahead of implementation of BS-VI norms

the two new petrol powertrain versions of Verna has so far received 8,000 bookings for the car

South Korean automaker Hyundai is pulling the plug on its diesel-run sedans as the industry inches toward the implementation of the second phase of Bharat Stage VI (BS-VI) emission norms. The decision comes in the wake of increased cost of diesel vehicles and a rise in the demand for petrol fuel options.

The sales numbers, according to data from the industry body Society of Indian Automobile Manufacturers, don’t look good for Hyundai’s diesel options in hatchbacks and sedans, which stood at 1.4% of total sales in April-February FY23 as compared with 11.4% in FY20.

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At the beginning of the transition to BS-VI standards in April 2020, leading carmakers in the Indian market, including Maruti Suzuki, Skoda-Volkswagen, and Renault-Nissan ceased producing diesel vehicles. However, Hyundai continued marketing its diesel-run SUVs, of which, 70-75 percent is comprised of sales of Tucson, 60 percent of Alcazar, 40 percent of Creta, and 15 percent of Venue.

It may be recalled that in the first two months of 2023, a host of diesel variants of Hyundai’s i20 and Verna were discontinued. However, the two new petrol powertrain versions of Verna have so far received 8,000 bookings for the car.

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Hyundai seems to be on the right path though, having already prepared an updated portfolio that meets regulatory standards and prices in the higher costs.

Tarun Garg, chief operating officer of Hyundai Motor India, believes that there is a simmering demand for sedans in the country which has not been adequately met with enough choices. “There is a set of customers who prefer sedans due to the performance and comfort these vehicles offer. With new models now coming in, sales have started growing”, he said.

Interestingly, 41 percent of the bookings for the new Hyundai Verna come from young buyers (30 years or less), compared to 20 percent for its SUV Creta. Nearly 25 percent of this cohort comprises first-time buyers. Given the solid response, Hyundai expects to double sales of the vehicle in the next 12 months, from 19,000 units sold in 2022, said Garg.