Toyota Signals Diesel May Retain a Role in Select Segments Amid Uneven Transition

As India adopts a multi-pathway transition toward cleaner mobility, internal combustion engines are expected to account for most near-term sales, with diesel remaining relevant in select segments, a senior Toyota Kirloskar executive said.

Demand signals, the executive indicated, remain fragmented across regions and used cases, underlining that diesel adoption is unlikely to decline uniformly or abruptly nationwide.

On a specific question about the future of diesel, Sabari Manohar, Group Head – Customer Service Group at Toyota Kirloskar Motor, said demand continues to be shaped by customer usage patterns and segment-specific requirements. “There are segments like Crysta, where it’s a purely diesel segment,” he said, while noting that tighter regulations in regions such as the NCR have created constraints in some markets. “It depends on the segment and that occupation,” Manohar added, pointing to the divergent demand signals Toyota is seeing across the country.

Manohar also indicated that customer preference for diesel remains visible in larger SUVs such as the Fortuner, where buyers typically prioritise torque, long-distance drivability, and rugged performance. “There are hardcore fans for diesel,” he said, adding, “Diesel is diesel.” 

While diesel volumes are smaller than in the past, his comments suggest that customer pull for diesel-powered premium SUVs has not disappeared, even as electrification gathers pace. 

The share of diesel powertrains in the Indian market rose marginally in 2025 to 19% of overall passenger vehicle sales, primarily driven by demand for mid-size and premium SUVs. 

More broadly, Manohar said Toyota Kirloskar Motor continues to approach the transition through a multi-pathway strategy, offering ICE, diesel, hybrids, and EVs in parallel. “At this point in time, we have good demand for hybrids, good demand for ICE, and we hope to create a good demand for EV as well,” he said, adding that the pace of change will depend on regulatory clarity. “We need to see how the whole policy direction changes,” Manohar said, underlining Toyota’s preference for a calibrated transition rather than abrupt exits from established powertrains.

While the company is non-committal on any future product plans, Autocar Professional learns that the Innova Crysta may be heading into a sunset in 2027, while the Fortuner SUV may continue to offer that powertrain due to sustained strong demand for the diesel powertrain.