India Diesel Engine Market Forecast Report by Power Capacity (up to 0.5 MW, 0.5 MW-1MW, 1MW-2MW, 2MW-5MW, Above 5MW), Application (On-Road Off-Road ), Regions (North, South, East & West India) and Company Analysis 2025-2033

India Diesel Engine Market Size

The Indian diesel engine market is expected to increase from US$9.10 billion in 2024 to US$13.20 billion by 2033, at a CAGR of 4.22% from 2025 to 2033. Increasing demand across different agriculture, construction, and transportation sectors would drive the growth. This is because diesel engines are most preferred for their reliability, fuel efficiency, and higher torque, hence ideal for heavy-duty applications.

India Diesel Engine Industry Overview

A diesel engine is an internal combustion engine that employs diesel fuel to ignite its motion. It compresses the air in the engine's cylinders, raising its temperature. When fuel is injected into this hot air, it gets ignited by heat and delivers power. Diesel engines are known to be efficient and rugged, and they offer a better economy and torque as compared with gasoline engines.

Diesel engines are very applicable in different applications due to the reliability and energy efficiency exhibited. In the transportation sector, diesel engines power trucks, buses, and trains as they provide the required strength to haul long distances and do heavy-duty operations. In agriculture, diesel engines are used in most tractors, irrigation pumps, and harvesters. They also play a crucial role in construction, powering machinery like excavators, cranes, and bulldozers. Diesel engines are also used in generators, providing reliable backup power for industries, businesses, and homes. The marine sector uses diesel engines for ships, while mining and military applications use them for heavy-duty equipment. Diesel engines' performance in demanding environments makes them indispensable in many industries.

Growth Drivers for the India Diesel Engine Market

Agriculture Sector in India

The agriculture sector in India is a significant growth driver for the diesel engine market. Diesel engines power various agricultural equipment, such as tractors, irrigation pumps, and harvesters, making them essential for improving productivity and efficiency in farming. With the increasing demand for mechanized agriculture to meet the needs of a growing population, the need for reliable, fuel-efficient diesel engines is rising. Furthermore, diesel engines also gain popularity in Indian agriculture as they can function properly even in remote rural areas that are not provided with access to electricity. August 2024, Yanmar Holdings Co., Ltd. purchased all shares of CLAAS India, which manufactures agricultural machinery, from Yanmar Coromandel Agrisolutions.

Infrastructure Development and Urbanization

Urbanization and infrastructure development are among the biggest factors driving the diesel engine market growth in India. These machines such as excavators, cranes, and bulldozers are widely used for building up infrastructure in construction sectors; road construction, for which the government is providing attention through smart cities and other programs; and urban developments have the demand for diesel machinery rising. Moreover, as these cities require an uninterrupted supply of power, increasing needs in diesel generators further expand this demand for diesel engines. Dec 2024: Mahindra Construction Equipment Division displayed its latest CEV5 range at BAUMA CONEXPO 2024 with the focus on innovation and reliability, with features that can compete with the best of the industry.

Transportation Sector

Transportation sector in India has been a key growth factor for the diesel engine market. They have large use in heavy-duty vehicles such as trucks, buses, and freight trains due to the great efficiency in fuel consumption and its robustness along with torque superiority. As long-distance haulage and commercial vehicle service continues to increase for transportation and logistic demands and passenger needs, it continues to be favored with diesel engines. Government initiatives like the National Highways Development Project and the rise of e-commerce and trade further boost the demand for diesel-powered cars, expanding the market. In August 2024, Daimler India Commercial Vehicles launched a new range of heavy-duty Rigid trucks under the BharatBenz brand in India.

North India Diesel Engine Market

The North India diesel engine market is growing robustly, driven by the demand for agriculture, construction, and transportation in the region. In agriculture, diesel engines power critical equipment like tractors, harvesters, and irrigation pumps, all of which are essential for efficient farming. The growing urbanization and infrastructure projects in states like Haryana, Punjab, and Uttar Pradesh further boost demand for diesel-powered construction machinery, such as excavators and cranes. In addition, the growth of logistics and transportation industries in cities such as Delhi and Chandigarh is raising the demand for diesel engines in commercial vehicles, trucks, and generators, which is fueling market growth in the region.

South India Diesel Engine Market

The South India diesel engine market is growing at a significant rate due to increasing demand in agriculture, construction, and industrial sectors. In agriculture, more diesel engines are used to operate tractors, irrigation pumps, and other machinery, ensuring increased productivity in states such as Tamil Nadu, Karnataka, and Andhra Pradesh. The construction industry is now booming in these states, especially the cities of Chennai and Bengaluru, which also increases demand for diesel-powered machinery used in cranes, excavators, and bulldozers. The transportation and logistics industry is also growing in South India, which in turn propels the demand for diesel engines in commercial vehicles, trucks, and generators.

East India Diesel Engine Market

The East India diesel engine market is growing at a stable rate due to rising agriculture, industry, and construction demands. In West Bengal, Odisha, Bihar, and Jharkhand, diesel is used in agriculture to power pumps for irrigation, tractors, and harvesters in the rural areas of this region, which increases productivity in the region. Rapid industrialization and infrastructure development in Kolkata and Bhubaneswar also increase the demand for diesel-powered machinery, including cranes, excavators, and generators. In addition, the rising demand for diesel engines in transportation, including trucks and commercial vehicles, is also seen in West India due to the growing logistic and trade activities in that region.

West India Diesel Engine Market

The West India diesel engine market growth primarily due to the demand of the agriculture, construction, and industrial sectors. In Maharashtra, Gujarat, and Rajasthan, diesel engines are commonly used in agriculture to power irrigation pumps, tractors, and harvesters in rural and semi-urban areas. The booming construction industry in cities like Mumbai, Pune, and Ahmedabad increases the demand for diesel-powered machinery, such as cranes, excavators, and bulldozers. Further, growth of logistics and transportation in the region-again highly because of increasing goods movement through ports like Mumbai-driven demand in commercial vehicles and generators for diesel engines.

Power Capacity- Industry is divided into 5 viewpoints:

1. up to 0.5 MW

2. 0.5 MW-1MW

3. 1MW-2MW

4. 2MW-5MW

5. Above 5MW

Application- Industry is divided into 2 viewpoints:

1. On-Road

a) Light Vehicles

b) Medium/Heavy Trucks

c) Light Trucks

2. Off-Road

a) Industrial/Construction Equipment

b) Power Generation

c) Agriculture Equipment

d) Marine Applications

Regions- Industry is divided into 25 viewpoints:

1. North India

2. South India

3. East India

4. West India

All companies have been covered with 5 Viewpoints

1. Overview

2. Key Persons

3. Recent Development & Strategies

4. Revenue Analysis

Company Analysis

1. Kirloskar Oil Engines Ltd.

2. Mahindra & Mahindra Ltd.

3. MHI VST Diesel Engines Pvt Ltd.

4. Simpson & Co. Ltd.

5. Cooper Corporation Private Limited

6. Kohler India Corporation Private Limited

7. Bajaj Auto Limited

8. Tata Motors limited

9. Cummins India Limited

10. Ashok Leyland Limited