Maruti Suzuki, the largest car manufacturer in India has reduced the production of diesel engines and diesel powered car models. The move by the auto giant comes in response to the slowing demand for diesel cars in the Indian auto market.
While the diesel car production capacity of Maruti Suzuki stands at around 42,000 automobiles, the current demand being experienced by the carmaker has dropped to 25,000 cars. The automaker is now operating two shifts at its Manesar plant instead of three.
The company attributes the fall in demand for diesel vehicles to the reducing gap between the petrol and diesel fuel prices. The price gap which was at Rs 27 per liter at its peak has now been reduced to Rs 18 per liter with the diesel price being hiked every month by small amounts.
These factors suggest that since the price difference would disappear altogether, the diesel cars witnessing a fall in demand.
