
India’s Diesel Compact SUV Showdown: Power Meets Practicality
While petrol dominates India’s compact SUV segment, diesel engines remain a steadfast choice for drivers prioritizing torque, fuel efficiency, and long-distance comfort. In 2025, seven models stand out in this niche, blending rugged performance with urban practicality. From the rugged Mahindra Thar to the tech-loaded Tata Nexon, here’s a detailed ranking of India’s most fuel-efficient diesel compact SUVs, based on ARAI ratings.
Why Diesel Compact SUVs Still Matter in 2025
Despite stricter emission norms and rising petrol popularity, diesel SUVs retain a loyal following. Their robust low-end torque suits India’s mixed driving conditions, while superior highway mileage appeals to frequent travelers. With the Kia Syros poised to join the fray, let’s explore how these models stack up.
7. Mahindra Thar RWD: Rugged Charm with Compact Dimensions

ARAI Mileage: 15.2 kmpl
Price: ₹11.49 – ₹12.99 lakh
Engine: 1.5L diesel (119hp, 300Nm)
Transmission: 6-speed manual
The Thar RWD combines off-road DNA with compact-SUV eligibility, thanks to its smaller 1.5L engine. While its ladder-frame construction and rear-wheel drive limit refinement, it’s a budget-friendly gateway to Mahindra’s iconic design. Note: The larger 2.2L Thar variant falls outside the compact category.
6. Mahindra Bolero Neo: Affordable 7-Seater with Retro Appeal

ARAI Mileage: 18.04 kmpl
Price: ₹9.95 – ₹12.15 lakh
Engine: 1.5L diesel (100hp)
Transmission: 5-speed manual
A revamped TUV300, the Bolero Neo targets value seekers needing seven seats. Its ladder-frame chassis and rear-wheel drive prioritize durability over comfort, but the 18.04 kmpl efficiency and sub-₹10 lakh entry price make it a practical choice. However, its 1-star Global NCAP safety rating is a concern.
5. Kia Syros: Upcoming Disruptor with Premium Features

ARAI Mileage: 20.75 kmpl (MT) / 17.65 kmpl (AT)
Price: To be announced (Feb 1, 2025)
Engine: 1.5L diesel (116hp)
Transmission: 6-speed manual / torque converter
Kia’s bold “tall-boy” Syros promises segment-first cooled rear seats and futuristic styling. Dealers report high demand for its automatic HTX+ variants, which balance 17.65 kmpl efficiency with convenience. If priced competitively, it could challenge Tata and Hyundai’s stronghold.
4. Mahindra XUV 3XO: Premium Pick with Hybrid Future

ARAI Mileage: 21.2 kmpl (AMT) / 20.6 kmpl (MT)
Price: ₹10 – ₹14.49 lakh
Engine: 1.5L diesel (117hp)
Transmission: 6-speed manual / AMT
The XUV 3XO bridges ruggedness and refinement, offering a feature-rich cabin and Mahindra’s smooth 1.5L engine. Its AMT variant leads with 21.2 kmpl efficiency, while a hybrid version (coming 2026) aims to future-proof the lineup.
3. Kia Sonet: Feature-Packed Contender with Sharp Styling

ARAI Mileage: 22.3 kmpl (MT) / 18.6 kmpl (AT)
Price: ₹10 – ₹13.34 lakh
Engine: 1.5L diesel (116hp)
Transmission: 6-speed manual / torque converter
The Sonet’s recent update removed the iMT option but retained its sporty design and segment-leading 22.3 kmpl manual mileage. Its upmarket interiors and 10.25-inch touchscreen cater to tech-savvy buyers, though the Venue and Nexon offer better efficiency.
2. Hyundai Venue: Style Meets Substance

ARAI Mileage: 23.7 kmpl
Price: ₹10.80 – ₹13.53 lakh
Engine: 1.5L diesel (116hp)
Transmission: 6-speed manual
Hyundai’s Venue diesel shines with a stellar 23.7 kmpl rating, though it lacks an automatic option. Its feature-loaded cabin and sleek design keep it relevant ahead of the next-gen model (launching late 2025), which will retain this proven engine.
1. Tata Nexon: Mileage King with 5-Star Safety

ARAI Mileage: 24.08 kmpl (AMT) / 23.23 kmpl (MT)
Price: ₹11.30 – ₹15.60 lakh
Engine: 1.5L diesel (115hp)
Transmission: 6-speed manual / AMT
The 2025 Tata Nexon diesel reigns supreme, blending 24.08 kmpl efficiency with a 5-star Global NCAP safety rating. Its AMT variant edges past rivals, while premium amenities like a 10.25-inch touchscreen and ventilated seats justify its higher price bracket.
Automatic Options: AMT vs Torque Converter
- AMT (Nexon, XUV 3XO): Budget-friendly but less smooth.
- Torque Converter (Sonet, Syros): Pricier, smoother shifts.
- No Automatic: Thar RWD, Bolero Neo, Venue diesel.
Future Outlook: Diesel’s Niche in an Electrifying Market
With hybrids and EVs gaining traction, diesel’s long-term role remains uncertain. However, models like the Nexon and Syros prove there’s still demand for efficient, torque-rich engines. Kia’s Syros launch could rejuvenate the segment, appealing to buyers unwilling to compromise on power or range.
Recent Posts
Popular Cars







Volkswagen has officially teased its highly anticipated entry-level electric vehicle (EV) ahead of its global debut in 2027. Positioned as an affordable and compact all-electric car, this model is expected to serve as a successor

Get ready, India! Mercedes-Benz is bringing the ultra-luxurious Maybach SL 680 Monogram Series to Indian shores on March 17, 2025. Originally unveiled internationally in August 2024, this high-end convertible is touted as the sportiest Maybach

Mahindra is making waves in the electric vehicle (EV) market with the much-anticipated launch of the BE 6 and XEV 9e electric SUVs. With official bookings opening on February 14, 2025, and deliveries beginning in

Vietnam’s VinFast Gears Up for India’s EV Boom Vietnamese automaker VinFast is set to revolutionize India's electric vehicle (EV) sector with its strategic expansion plans. The company has announced its entry into the Indian market