Latest Car News in India

Monday, January 07, 2013

By Manoj Kumawat

Diesel car craze soon to get a jolt as diesel prices to see Rs 10 per litre hike

The price divide between petrol and diesel will soon be over as far as the proposal of a hike of Rs 10 per litre in diesel price is concerned. Soon, a petrol variant of Renault Duster will be as popular as its diesel models and soon Mahindra could be highly thinking of launching petrol version of its SUVs such as the Mahindra XUV 500 that has almost taken over the market. The latest diesel price hike to an extent of Rs 5 in September 2012 has to some extent put a check on rising demand for diesel cars, still the ratio of car sales sways to the side of diesel cars in India. But the latest proposal of a hike in diesel prices to bridge the gap between the two fuels will to a great extent put diesel and petrol cars at par with each other.


The industry has literally enjoyed the sale of diesel cars to an extent of 60:40 ratio in 2011-12 but September month was crucial as it marked the rise in preference for petrol cars over diesel cars. However, diesel cars still are more in demand and that is why car makers such as Tata that are still to launch the diesel model of their cars such as Tata Nano are in the process of launching it soon. But the fact that petrol cars have more age than diesel cars and the fact that it is wise to opt a petrol car if the daily running is less than 50 km per day, has really put a brake on diesel car sales.

Mahindra XUV 500 Pictures

See More Mahindra XUV 500 Photos Get Mahindra XUV 500 Price


Though the car buyers was swayed by the almost Rs 25 per litre gap between petrol and diesel prices and thought a diesel car could actually save thousands of rupees; it has now understood well that it is the usage that matters and not the nature of fuel. Experts say that it was due to this wide gap that there was a rally for diesel cars in India and every other car maker promoted its diesel variant than the petrol one.

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