World's leading auto manufacturers like Mercedes, BMW, Hyundai, Maruti Suzuki, Honda, General Motors and Toyota plans to launch new diesel cars or new diesel variants of its existing models in Indian auto market. Few years back diesel cars are not much popular in Indian market because of its high maintenance cost, engine noise and high price tag always put brakes on customers plan to buy a diesel car. With technology getting superior, now diesel cars are more fuel efficient and environment-friendly, so that all leading auto manufacturers are planning a slew of diesel launches.

Luxury car manufacturer, Mercedes is planning to launch the all new Mercedes Benz E class with diesel engine option. BMW is working forward to launch its new models with diesel engine in the forthcoming auto expo. In fact, auto manufacturers like BMW, Mercedes and Audi are selling more diesel variants in comparison to their petrol counterparts.

India's second largest passenger car manufacturer, Hyundai also gearing up to launch the diesel version of its popular luxury model Hyundai Sonata. Maruti is also planning to launch the diesel version of its popular sedan model Maruti SX4 which is expected to be launched in Indian market in the first quarter of 2010. As Maruti’s popular models like its super hatch Maruti Swift and its sedan version Maruti Swift Dzire
are selling 65% diesel variants. Other auto manufacturers like Tata Motors, Mahindra and Mahindra, and Ford are also ramping up the production of their diesel models to tap this growing market.

Honda CRV which is the market leader in premium SUV (Sports Utility Vehicle) segment, is now under pressure because of the launch of Toyota Fortuner in the same segment and with diesel engine.

Toyota-Kirloskar Motors (TKM) the leading auto manufacturer, currently selling there Toyota Corolla, Toyota Camry, Toyota Innova and the Toyota Fortuner, which sells more than 99% of diesel variants says, ”premium car customers need higher torque, power and performance that can be developed much better with advanced diesel technology,” said Sandeep Singh, the deputy MD (sales and marketing) of Toyota Kirloskar Motors. With demand outstripping supply, Toyota Kirloskar plans to increase production of the Toyota Fortuner by more than 60% this month.

Popular car models like Tata Indica, Tata Indigo, Mahindra Logan, Chevrolet Optra Magnum, Chevrolet Cruze, Hyundai Verna and Hyundai Sonata are continously seeing the growth in diesel model sales in the recent months. “Premium car customers travel long distances, so fuel economy plays an important role. With diesel cost being lower than petrol, the payback is quicker,” said Arvind Saxena, senior VP, marketing and sales, Hyundai Motor India.