Maruti, Toyota Aim To End Diesel Powertrain Dominance In Compact SUV Segment With Grand Vitara And Hyryder Hybrid

Even with a higher number of petrol-only models to choose from, a majority of the compact SUV sales are of diesel models

The subcompact SUV segment in India is set to become more diverse with the introduction of premium contenders from Toyota and Maruti. The Maruti Grand Vitara in particular is poised to be a strong disruptor in terms of market share, potentially displacing Hyundai Creta from the segment’s throne.

The Maruti and Toyota SUVs will also be introducing strong hybrid powertrain in this segment as well as being petrol-only offerings. According to Maruti’s data, diesel models account for 51 percent of the segment’s sales. This is a strong contrast to the subcompact SUV segment, dominated by Maruti with the Brezza, where petrol models currently account for 80 percent of sales. 

The compact SUV segment accounts for 18 percent of Indian passenger vehicle market share, and has grown by 45 percent just in the last three years. This segment is currently populated by the Hyundai Creta, Kia Seltos, Skoda Kushaq, Volkswagen Taigun, MG Astor, Nissan Kicks and soon-to-be-discontinued Maruti S-Cross. Only the Creta and Seltos are available with a diesel engine and is certainly the reason why these two are the best selling SUVs in this space.

The petrol-only models from Skoda-VW, Maruti, MG and Nissan presently account for just around 23 percent of the compact SUV market share. With the introduction of the Maruti Grand Vitara, which is poised to be far more successful than the S-Cross, the segment’s balance could shift heavily towards petrol powertrains.

A similar shift was witnessed in the subcompact SUV segment as well. In 2018, diesel models accounted for 80 percent of the segment sales, the opposite of today’s share. Back then, the Maruti Vitara Brezza dominated the segment and it was offered with a diesel engine only. In March 2020, the segment leader became a petrol-only offering which had a significant impact in petrol models, accounting for the lion’s share of the segment.

While the share split between petrol and diesel models in the compact SUV may not be as one-sided as it is for the subcompact SUV space, it could reduce diesel models to a minority share. The Toyota Urban Cruiser Hyryder’s hybrid option will undercut the Grand Vitara hybrids and both will play a role in the increased market share of petrol and hybrid engines.