Petrol, Diesel or CNG: Which Used Car Does Delhi Prefer?

Technological advancements have brought in more alternative fuel systems besides petrol and diesel. This trend has naturally spilt into the used car market. Like different body types and transmission preferences, car buyers also have fuel preferences and this is different for each city. Regulations around Delhi NCR in particular play a key role. 

The Indian capital has a vast used car ecosystem, a majority of which are fueled by petrol cars, while CNG is on the rise. The fuel preferences are influenced by many factors, like infrastructure, running costs and even bureaucracy. In this article we find out which fuel drives the second hand cars in Delhi. 

Used Car Fuel Trends in Delhi: Petrol Remains Popular

To better understand the fuel trends in Delhi, CARS24 Gears of Growth report about  used cars sales in the capital in the years 2023 and 2024 and here’s what we found.

Key Takeaways From The Data

• CNG cars are a small chunk of the overall sales as even the new CNG cars sold are fewer compared to diesel. CNG infrastructure is growing in India, but 

the long wait lines at CNG pumps and compromised boot space are a factor why buyers shy away from used CNG vehicles. 

• That said, used CNG car sales are rising steadily owing to the fuel’s low price compared to petrol and diesel, besides CNG vehicles returning fantastic mileage as well. 
• Sales of used diesel vehicles have declined as well.  Factors such as higher price of used vehicles, reducing price difference between petrol and diesel fuels and higher maintenance cost of diesel vehicles are the key reasons that contribute to decline in demand. 
• Delhi’s stringent emissions policy and blanket bans on diesel powered cars that are older than 10 years discourage buyers.. 
• As a result, diesel cars in Delhi suffer a higher rate of depreciation compared to petrol vehicles. 
• Petrol vehicles account for a larger chunk of used car sales in Delhi and continue growing as it is considered a safer bet. Petrol cars are more affordable to maintain, and considered to be less polluting. 

Do Fuel Types Affect Resale Value In Delhi?

Yes, fuel types do affect resale value. As stricter emission norms are enforced, carmakers are leaning towards low emission fuels such as petrol and CNG, while slowly phasing out diesel vehicles entirely. This seems to be the trend with used cars as well. 

• Petrol cars enjoy a higher resale value owing to their low running costs. 
• CNG vehicles are gaining popularity resulting in lower depreciation costs. 

• Buyers are preferring petrol and diesel vehicles resulting in lower demand which further affects its resale price. 

   

Body Types and Fuel Types: The Correlation

Hatchbacks remain the most popular second hand cars in Delhi followed by sedans and SUVs. These body types are sold with CNG, petrol and diesel engines.

Hatchbacks:

Carmakers offer hatchbacks mainly with petrol powertrains with diesel and CNG powertrains being far and few in between. This trend is seen in used hatchback sales as well. While petrol used car sales in Delhi continue to rise, diesel used car sales are waning, primarily due fewer available models and high maintenance costs. 

Sedans:

Interestingly, unlike hatchbacks, used diesel sedans are popular in Delhi, recording a growth in demand. This is attributed to carmakers offering diesel options in both sub-compact and midsize sedans. That said, petrol car sales are not far behind. However petrol sedan sales are declining recording a significant drop between 2023 and 2024 sales. 

SUVs: 

Diesels continue to be the fuel of choice for SUVs, but stricter emission norms have impacted sales and used car buyers seem to prefer petrol engines. MPVs covered under SUVs make up a chunk of CNG SUV sales which is gradually rising as well. 

Reasons behind used petrol vehicles being more popular in Delhi?

There are a lot of factors behind the petrol vehicles being more popular in Delhi. Here are some important ones.

• Used petrol cars are easily available and carry a comparatively low price as well. 
• Petrol cars are more reliable and more affordable to maintain. 
• Petrol is easily available even in the most remote corners of India thanks to a vast number of fuel pumps compared to CNG. 
• Petrol engines are more refined and readily available with automatic transmission leading to better comfort and convenience. 

Most Popular Used Cars in Delhi, Fuel Wise:

While petrol remains the fuel of choice for used cars in Delhi, diesel used cars remain popular. Based on used cars data for Delhi, the Hyundai i10 is the most popular used petrol car while the Maruti Suzuki Swift is the best selling used diesel car. The Maruti Suzuki Wagon R is the highest selling used CNG vehicle. 

Petrol Cars: 

The Hyundai i10 is the best-selling used petrol hatchback followed closely by the Maruti Suzuki Swift. Interestingly while four of the top five best selling petrol used cars are hatchbacks, the third best selling used car is the Honda City sedan. 

Diesel Cars:

While the Swift diesel is the best selling used diesel hatchback, used Swift petrol models are more popular. The Swift Dzire is the highest selling diesel sedan owing to its frugal motor and low running costs. The Ford EcoSport is the best-selling diesel SUV followed by the Maruti Suzuki Vitara Brezza and the XUV 500.

CNG Cars: 

Maruti Suzuki has the highest number of CNG vehicles in its portfolio so it’s no real surprise that the best selling used CNG cars all come from the Japanese brand. The Maruti Suzuki Wagon R is the most popular CNG-powered car, followed by the Celerio and Alto. MPVs are quite popular as well, with the Ecco and Ertiga rounding up the top five used CNG cars list. 

While hatchbacks still dominate the used car market followed by sedans and SUVs, the use of CNG MPVs also indicate that practicality and low running costs are an important buying factor as well. 

Conclusion:

While Hybrids and Electrics are joining the Indian automotive ecosystem, these are far and few in between to make a dent in the used car market, which is currently occupied by petrol, diesel and CNG cars. 

Government regulations in Delhi NCR have discouraged the demand for diesel-powered cars in the city, which has impacted the used car market as well. This also results in higher depreciation for diesel cars in the region.

CNG vehicles are gaining popularity especially in metro cities like Delhi, owing to the increasing number of CNG fuel pumps. Thanks to its affordability and engines offering excellent mileage, CNG vehicles have lower running costs making them quite practical too. However, demand for petrol-powered cars in the used car market in Delhi continues to remain strong.