Luxury buyers move from diesel to electric

Sales of diesel vehicles in the luxury vehicle segment has more than halved in the last five years with India’s rich and well-heeled moving away from the fuel which has traditionally powered their hot wheels.

The share of diesel in total sales of luxury vehicles in the local market declined to 35% last year, from about 80% five years, even as buyers continued to shift to feature-rich SUVs. Sales of electric cars, meanwhile, increased to account for 6% of overall volumes in the segment – thrice of that in the mass market – with rich young, aspiring consumers emerging as front runners in adoption of clean technologies. Ease of installing charging points at homes or offices for more affluent buyers, who can also buy electric as a second or third vehicle has been fuelling demand for these at the upper end of the market.