Shrinking gap between petrol and diesel prices have led to rise in demand for petrol engined cars in India. The abrupt hike in petrol prices few years back had led to surge in diesel powered cars, however data for FY 2013-2014 shows that there has been a sharp increase in petrol powered vehicles by 58 per cent. On the other hand sales of diesel cars dipped 14 per cent in last financial year. Demand for diesel cars could slump further if the new government approves a pending Cabinet proposal for a sharp hike in diesel price.
The overall car market saw a drop in sales by 5 per cent in FY 2013-2014. It has been observed that in urban market where sales of new cars accounts for almost 50 per cent has seen preference of petrol cars over diesel cars by the customers. Petrol cars are priced lower than diesel cars, the huge price gap between both the models is also been cited as one of the major reasons behind decline is diesel engined cars. Diesel is currently being sold in the capital of India, New Delhi at Rs 56.7, however sources close to development opine that diesel prices may shoot up by Rs 10 in coming time.
Petrol cars set to make a comeback as demand rises sharply in last fiscal
Sales of commercial vehicles have also witnessed drop over last couple of months. Regular increase in diesel rates and rupee appreciation has led to decrease in fuel subsidy. Most of the car makers had introduced diesel variants of their popular models owing to sharp demand in diesel trims.
But ever since the price gap between diesel and petrol shrank, customers started preferring petrol models more than the diesel engined cars. Of late the auto makers have also seen steep fall in diesel variants of their popular models over petrol trims.
Shrinking gap between petrol and diesel prices have led to rise in demand for petrol engined cars in India. The abrupt hike in petrol prices few years back had led to surge in diesel powered cars, however data for FY 2013-2014 shows that there has been a sharp increase in petrol powered vehicles by 58 per cent. On the other hand sales of diesel cars dipped 14 per cent in last financial year. Demand for diesel cars could slump further if the new government approves a pending Cabinet proposal for a sharp hike in diesel price.
The overall car market saw a drop in sales by 5 per cent in FY 2013-2014. It has been observed that in urban market where sales of new cars accounts for almost 50 per cent has seen preference of petrol cars over diesel cars by the customers. Petrol cars are priced lower than diesel cars, the huge price gap between both the models is also been cited as one of the major reasons behind decline is diesel engined cars. Diesel is currently being sold in the capital of India, New Delhi at Rs 56.7, however sources close to development opine that diesel prices may shoot up by Rs 10 in coming time.
Petrol cars set to make a comeback as demand rises sharply in last fiscal
Sales of commercial vehicles have also witnessed drop over last couple of months. Regular increase in diesel rates and rupee appreciation has led to decrease in fuel subsidy. Most of the car makers had introduced diesel variants of their popular models owing to sharp demand in diesel trims.
But ever since the price gap between diesel and petrol shrank, customers started preferring petrol models more than the diesel engined cars. Of late the auto makers have also seen steep fall in diesel variants of their popular models over petrol trims.
Shrinking gap between petrol and diesel prices have led to rise in demand for petrol engined cars in India. The abrupt hike in petrol prices few years back had led to surge in diesel powered cars, however data for FY 2013-2014 shows that there has been a sharp increase in petrol powered vehicles by 58 per cent. On the other hand sales of diesel cars dipped 14 per cent in last financial year. Demand for diesel cars could slump further if the new government approves a pending Cabinet proposal for a sharp hike in diesel price.
The overall car market saw a drop in sales by 5 per cent in FY 2013-2014. It has been observed that in urban market where sales of new cars accounts for almost 50 per cent has seen preference of petrol cars over diesel cars by the customers. Petrol cars are priced lower than diesel cars, the huge price gap between both the models is also been cited as one of the major reasons behind decline is diesel engined cars. Diesel is currently being sold in the capital of India, New Delhi at Rs 56.7, however sources close to development opine that diesel prices may shoot up by Rs 10 in coming time.
Petrol cars set to make a comeback as demand rises sharply in last fiscal
Sales of commercial vehicles have also witnessed drop over last couple of months. Regular increase in diesel rates and rupee appreciation has led to decrease in fuel subsidy. Most of the car makers had introduced diesel variants of their popular models owing to sharp demand in diesel trims.
But ever since the price gap between diesel and petrol shrank, customers started preferring petrol models more than the diesel engined cars. Of late the auto makers have also seen steep fall in diesel variants of their popular models over petrol trims.
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