Fewer buyers are opting for diesel cars because of rising diesel price, which in turn had led to narrowing of differential with the cost of petrol. According to a report in the Business Line, diesel cars accounted for 33 percent of Marutis total sales for the October-December quarter, compared with 40 percent in the year-ago period. Similarly, the diesel version of Hondas compact sedan Amaze accounted for over 80 percent of sales at the time of its launch. That has now come down to 60 percent, says the report, adding that a similar trend was seen at Tata Motors too, which recently. The difference in prices between diesel and petrol was its widest in 2012-13, as prices of petrol kept rising, while that of diesel remained steady. However, the tide turned from July last year after the government allowed oil marketing companies to hike diesel prices every month. While petrol is still around Rs 18 dearer than diesel, a petrol vehicle is cheaper than a diesel vehicle. Even after accounting for the higher mileage of diesel, the breakeven time for a diesel car owner has got longer. In other words, he has to clock more miles before the benefits of lower fuel prices can start kicking in.
Posted on: Tue, 11 Mar 2014 07:07:23 +0000
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