These 5 Diesel Cars Are Still Selling Strong in India—Thanks to Their Mileage Game
On the ground, despite the loud buzz around EVs and hybrids, diesel cars still seem to be quietly holding their ground—especially in towns and rural pockets where long drives and rugged roads are part of the daily routine.
Yes, CNG, electric, and hybrid vehicles may have taken over the headlines, and there’s no denying that India is fast transitioning into greener mobility. But diesel? It’s not dead yet. In fact, for many Indians—especially those with long highway commutes or commercial needs—diesel-powered vehicles are still a go-to. And the reason is pretty simple: mileage and muscle.
While stricter emission norms have phased out a lot of affordable diesel options, a handful of solid contenders still remain. And surprisingly, they offer a mix of performance, reliability, and budget-friendliness, all packed within ₹10 to ₹12 lakh.
So if you’re someone who still believes in the power of diesel—and you’re not alone—here’s a closer look at the 5 most budget-friendly diesel cars you can buy in India right now.
1. Tata Altroz Diesel – The Most Affordable Diesel Hatchback Today
As it appears, Tata Motors has quietly carved a niche for itself by holding on to diesel even when others let go. And the Altroz Diesel is a fine example of that.
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Engine: 1.5L 4-cylinder diesel
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Power & Torque: 90 BHP, 200 Nm
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Transmission: 5-speed manual gearbox
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Starting Price: ₹8.99 lakh (ex-showroom)
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Top-end Price: ₹11.29 lakh (ex-showroom)
Now, while it may not be the fastest off the block, what it offers is a steady, fuel-efficient drive with just the right amount of punch for city and highway use alike. According to real-world feedback, the Altroz Diesel delivers fuel efficiency of around 23–25 km/l, making it one of the best mileage diesel hatchbacks out there.
And with Tata’s sturdy build quality and safety rating (it scored 5 stars in GNCAP), it’s become a sensible pick for families and first-time buyers.
2. Mahindra Bolero – The Rugged Legend That Refuses to Retire
Let’s be honest—if there’s one vehicle that’s practically a household name in semi-urban India, it’s the Mahindra Bolero. Often spotted on village roads, dusty terrains, and even as a police vehicle in some states, this one’s got a reputation that precedes it.
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Engine: 1.5L 3-cylinder diesel
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Power & Torque: 76 BHP, 210 Nm
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Transmission: 5-speed manual
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Price Range: ₹9.79 lakh to ₹10.91 lakh (ex-showroom)
Sure, it’s not the most modern-looking SUV, and the interior tech might feel a generation behind. But that’s not why people buy the Bolero. They buy it for its unmatched durability, low maintenance, and ability to take on rough roads without flinching.
In fact, many transporters and rural users swear by its real-world mileage of around 16–18 km/l, even when fully loaded.
3. Kia Sonet Diesel – Premium Feel Meets Diesel Efficiency
If the Bolero is all about old-school muscle, the Kia Sonet brings a completely different flavor to the diesel segment. This sub-compact SUV is loaded with tech, oozes style, and manages to be frugal too.
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Engine: 1.5L 4-cylinder CRDi diesel
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Power & Torque: 115 BHP, 253 Nm
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Transmission Options: 6-speed manual, iMT, 6-speed torque converter automatic
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Price Range: ₹9.99 lakh to ₹13.39 lakh (ex-showroom)
What really makes the Sonet stand out is its refined cabin, touchscreen infotainment, connected car features, and the option of an automatic diesel—which is quite rare at this price point.
Mileage-wise, owners report an average of 20–22 km/l for the manual and around 18 km/l for the automatic—solid figures for a diesel SUV packed with features.
And with its aggressive styling, LED DRLs, and alloy wheels, the Sonet doesn’t just move—it turns heads.
4. Mahindra Bolero Neo – A Modern Twist on an Old Favorite
Another Mahindra? Yes, but the Bolero Neo is quite a different beast. It borrows the rugged DNA of the classic Bolero but gives it a more urban, refined appeal. Think of it as the cousin that just got a city job but still knows how to handle a farm.
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Engine: 1.5L mHawk diesel
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Power & Torque: 100 BHP, 210 Nm
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Transmission: 5-speed manual
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Starting Price: ₹9.95 lakh (ex-showroom)
Underneath, it’s actually based on the same platform as the older TUV300, but Mahindra has rebranded and repositioned it smartly. The ride is more composed, the interiors better finished, and it offers a unique proposition: a body-on-frame diesel SUV under ₹10 lakh.
If you’re someone who wants a tough diesel SUV with a slightly more premium feel than the traditional Bolero, this one ticks a lot of boxes.
5. Mahindra XUV 3XO Diesel – The New Kid That’s Shaking Things Up
Launched as a fresh update to the XUV300, the Mahindra XUV 3XO has started to gain serious traction in the compact SUV space. And its diesel variant is making headlines for all the right reasons.
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Engine: 1.5L 4-cylinder diesel
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Power & Torque: 115 BHP, 300 Nm
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Transmission Options: 6-speed manual, AMT
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Starting Price: ₹9.99 lakh (ex-showroom)
Here’s the kicker: with 300 Nm of torque, the XUV 3XO Diesel is easily the torquiest car in its class. Whether it’s overtaking on highways or climbing hills with luggage and passengers, this thing moves with surprising ease.
Plus, with Mahindra now adding a modern design, larger infotainment system, ADAS features, and a dual-pane sunroof, the XUV 3XO seems like an ambitious leap forward.
Diesel Isn’t Dead Yet—Just Leaner and Smarter
So while the world may be moving toward green, it seems diesel still has its foot on the pedal—at least in India’s value-driven segments.
What we’re seeing now is a leaner, more focused lineup of diesel vehicles. No longer present in every budget category, but more refined, more powerful, and better equipped than before.
Whether it’s the ruggedness of the Bolero, the urban flair of the Sonet, or the punch of the XUV 3XO—diesel fans still have reasons to cheer.
Frequently Asked Questions (FAQs)
Q1. Are diesel cars still worth buying in 2025?
Yes, especially if you drive long distances regularly. Diesel cars offer better mileage and torque, which makes them cost-effective over time despite slightly higher initial prices.
Q2. Why are so many carmakers discontinuing diesel models?
Due to stringent BS6 Phase 2 emission norms, the cost of making diesel engines compliant has gone up. For budget cars, this eats into profits, so many brands have pulled out.
Q3. Which diesel car gives the best mileage under ₹12 lakh?
As per reports and user feedback, the Tata Altroz Diesel leads the mileage game with over 23–25 km/l in mixed driving conditions.
Q4. Which is the most powerful diesel car under ₹12 lakh?
The Mahindra XUV 3XO Diesel, with 300 Nm torque, is currently the most powerful in its segment.
Q5. Is the Kia Sonet Diesel available with automatic transmission?
Yes, it offers a 6-speed torque converter automatic option in diesel, making it one of the few in its class to do so.
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