New Delhi: Toyota Kirloskar Motor, Group head of Customer Service, Sabari Manohar, believes that the diesel engine will remain relevant for certain segments. The statement comes in response to the question of the future of diesel in India. He also indicated customer preference for diesel remains strong in the bigger SUVs like the Fortuner.
There is a segment that would love diesels, and the demand for both diesel powertrains in SUVs and MPVs remains strong even while electric powertrain starts becoming strong noted, Toyota. The demand is shaped by customer usage patterns and segment-specific needs as well.
Manohar further said, “There are segments like Crysta, where it’s a purely diesel segment.” Of course, he further noted that tighter regulations in regions like NCR have created some constraints.
However, in 2027, with the introduction of CAFE (Corporate Average Fuel Efficiency) 3 norms, Toyota will discontinue the Innova Crysta. In fact, it was supposed to exit in 2025, but the demand, along with semiconductor constraints on Innova Hycross, extended the rope for the Crysta.
This means that Toyota will effectively discontinue the 2.4-litre four-cylinder diesel engine and just have the bigger 2.8-litre unit, which will be in duty in the Fortuner and Hilux. To comply with the regulations better, the brand has already brought out the Fortuner with a mild-hybrid and will be pushing for its hybrid lineup, which takes advantage of ‘super credits’, which make it easier to meet the hard CO2 targets of CAFE 3.
How diesel demand looks in India
If a comparison is drawn, then the share of diesel sales of overall passenger vehicle sales rose a little from 2024’s 17.93 per cent to 2025’s 18.33 per cent. The increase is quite a lot due to the midsize SUVs like the Hyundai Creta and big cars like the Fortuner. Manohar noted that the reference for diesel was in the bigger SUVs where drivers enjoy the torque, drivability in long-distance and good rugged performance.
Of course, the contrast is that the demand signals are fragmented across regions and use cases, underlining that diesel adoption is unlikely to decline uniformly or abruptly across the country. Manohar concluded with good demands in both their powertrains on offer; they hope to replicate the same EVs as well.