The soaring petrol prices in India are proving diesel cars as a more favorable option for the Indian consumers. High interest rate on loans, compounded with successive petrol price hikes have left consumers opting for diesel cars over the petrol cars.
Currently most new launches come with the diesel variants, and in some cases diesel variants are doing much better than their petrol counter parts. For example demand for diesel Maruti Swift hatchback, SX4 and Dezire accounts for 70% of sales of these cars and is much higher than their petrol variants. Commenting on the recent trend General Motors India Managing Director Karl Slym said “At present the diesel market is around 28 percent and this is expected to reach 35 to 40 percent in the next few years.”
Recognizing the trend most companies like Volkswagen, Hyundai Motors, Tata Motors and General Motors are planning to add more diesel variants to their collection. Reports also suggest soon Tata Nano, Toyota Etios and Chevrolet Beat might be available in diesel. With Honda City being overtaken by other diesel variants in the same price window, the preference of the consumers for vehicles with lower running cost is clear.
