Mahindra Is India's 'Diesel Car King': Proof

Even as many carmakers move away from diesel engines, Mahindra is charting a different course and winning. In FY2024-25, Mahindra recorded sales of over 4 lakh passenger vehicles, with diesel-powered SUVs accounting for more than 75 percent of that volume. At a time when most brands are limiting diesel options to a few top-end models, Mahindra’s bet on a diesel-heavy portfolio is not just unusual, it is remarkably successful.

While brands like Maruti Suzuki, Honda and Renault have exited the diesel space entirely, and Hyundai has cut back sharply, Mahindra’s diesel-first approach has helped it climb the charts. It is now consistently among the top three SUV sellers in the country.

Diesel dominance that defies trends

In June 2025 alone, Mahindra sold over 43,000 utility vehicles. The Scorpio N and Scorpio Classic together clocked around 12,000 units. The Thar added over 6,000 units, while the Bolero twins contributed nearly 9,000 more. Each of these models is either diesel-only or sees the bulk of its demand in diesel. The XUV700, which is available with both fuel types, also sees a heavy tilt toward diesel in AWD and mid-variant trims.

Mahindra’s core audience is not just chasing flashy features or hybrid credentials. Instead, buyers want ruggedness, torque and real-world efficiency. That is exactly what Mahindra delivers through its 2.2-litre mHawk diesel engine, which powers most of its SUV range in different states of tune.

What makes this more impressive is that Mahindra’s diesel engines are not confined to low-end trims. The higher-spec variants with automatic transmission and 4WD are also in demand, showing that diesel is not just a budget buy. It is a preference among well-informed SUV users.

Why Mahindra doubled down when others backed off

When BS6 norms were enforced in 2020, many automakers deemed it unviable to upgrade diesel powertrains. Maruti was the biggest name to walk away, followed by Honda, Toyota in smaller segments, and others. Mahindra took the opposite route. It invested in upgrading its engines, fine-tuned NVH levels, and integrated diesel with premium features.

The decision was strategic. Mahindra’s core products such as the Thar, Scorpio, Bolero and XUV700 are built on ladder-frame or robust monocoque platforms designed for performance in harsh conditions. Petrol engines, especially in heavier body-on-frame SUVs, often lack the low-end torque needed for towing or off-roading. Diesel fills this gap effectively.

The result is a brand image that aligns with buyer expectations. Mahindra SUVs are seen as capable, rugged and ready for long-distance use. In semi-urban and rural markets, this reputation gives Mahindra an edge that few others can match.

Not just about fuel, but value

Rising fuel costs and emission norms have made diesel engines less attractive on paper. But for many Mahindra buyers, the real-world economics still favour diesel. Better mileage, longer service intervals and superior pulling power mean that buyers often see more value from a diesel vehicle in the long run.

Moreover, Mahindra has stayed competitive on pricing. The Scorpio N diesel starts just under ₹14 lakh and offers features like terrain modes, LED lighting and a 6-speed automatic, creating a strong value proposition. Even the Thar, with its diesel automatic 4WD combo, delivers more off-road credibility than most compact crossovers at similar price points.

Holding firm while preparing for tomorrow

Mahindra’s diesel push is not a sign of ignoring the future. The company is also working aggressively on its electric SUV lineup, with models like the BE.05 and XUV.e8 under development. But it has been clear that it will not abandon what works today in the name of tomorrow’s trends.

The company’s diesel engines are already future-compliant, and the latest updates are being calibrated to meet upcoming CAFÉ and RDE norms. For now, Mahindra’s blend of traditional powertrains and modern features has created a sweet spot. And while the rest of the market shifts toward petrol-turbo and hybrid strategies, Mahindra has proved that strong diesel sales, if backed by smart product choices, can still be the backbone of a growing SUV brand.