Is Hyundai making a mistake not offering a diesel option for the Ai3?

Question

Earlier, Hyundai confirmed that the upcoming Ai3 micro-SUV will not be offered with a diesel engine, and will be available only with petrol engines. At a time when diesel prices in India are often lower than petrol, and many buyers still prefer diesel engines for their superior fuel efficiency and torque, this decision makes sense. But smaller cars have become more expensive to produce because of stricter emission norms. It seems like Hyundai is betting on the rising trend of petrol and electrification in India. But is that the right call for a car that could be used for long distance travel or by those who have to watch the pennies? Will the lack of a diesel option put a limit on the Ai3's appeal in rural markets or with high mileage users? Or is Hyundai actually ahead of the curve with its move away from diesel in this segment?

@kunal-vikr · Accepted Answer

Perhaps they are leaving some room for a diesel variant down the road? We start with petrol, see how it goes and if there is demand then we introduce diesel.

@nakul-pahw · Answer

Hyundai is doing something right. It means if they're not offering diesel, their market research shows it not worth it.

@krishna-bo · Answer

It's not just about the fuel. Torque is better on diesel engines and that’s good for bad roads. The power feels underpowered without it.

@gazal-sing · Answer

In semi urban and rural areas that still prefer diesel for its lower running cost, this could backfire.

@md-shafi-i · Answer

If they’re skipping diesel, they should at least offer a CNG option. The fuel efficiency crowd would like that.

@sana-ifran · Answer

I think it's the right move. In the long run, maintenance is cheaper than it was and petrol engines have become very efficient.

@rahul-kuma · Answer

It's a tough call. It would add to the cost, and might push the Ai3 out of its target price range. It's probably why Hyundai did the math.

@varun-shar · Answer

Big mistake. Even for smaller models, the SUV segment is still diesel territory. They are missing a big market.

@vijay-kuma · Answer

Diesel is dying anyway. Hyundai smart is petrol and maybe a hybrid or EV version later.

Is Hyundai making a mistake not offering a diesel option for the Ai3?

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