Wednesday, September 28, 2011
By Pranjal Gera
Indian Diesel car market expanding
The demand for Diesel cars is rising constantly with time. There are two reasons for the same- first is the difference in the prices of diesel and petrol. The price of diesel is about 40% less than that of petrol's. The second reason is that the diesel cars are about 30% more fuel-efficient than the petrol cars. These two reasons have made Indian families go for Diesel cars, rather than petrol cars. However, diesel cars cost about Rs. 80,000- Rs. 100,000 more than the petrol variants, but this difference recovers in the long run, due to the 70% lower running costs. The resale value of diesel cars has increased in the past few months. On an average, diesel cars have enjoyed a 5percent-7percent increase in resale values.
But the question that is on everybody mind is how long would this continue, how long would the demand for diesel cars remain on the up side? The answer cannot be given at this point of time, but car companies are optimistic about the high demand and rising market for diesel cars. New diesel cars are being launched almost every week, but this could end up drastically. As is the current market, the automobile companies and experts are quite sure that the demand would increase even more, and the diesel cars would account for 40% of the total car market by 2016.
The major diesel car market in India is the hatchback segment. This segment has over 50% share of total car sales in the India market. The favourite cars of this segment include- Hyundai i20, Maruti Swift, Chevrolet Beat, Nissan Micra, Ford Figo, Toyota Etios, Tata Indica and Volkswagen Polo. These cars are priced in the range of Rs 3.5 - Rs 7 Lakhs, and are available in both petrol and diesel variants.