Recently, diesel car was on everybody’s wish list. Soaring prices of petrol compelled everyone to buy diesel variants. Even luxury carmaker like Porsche has launched a diesel model. One can say that the price of petrol was pinching hard to the niche segment of the society too. But as of now, reports from the market say that the demand for diesel variant has fizzled out. It went such a way that diesel variants are now on the discount-list of carmakers, except some of the models.
Confusion over the policy of Government regarding imposition of Diesel Tax or a sudden increase in the price of diesel has changed the scenario of diesel variants. Ashok Khanna, Vice President and Business Head of Auto Loans, HDFC Bank say that December has shown dull sales. Footfalls haven’t increased expectedly. Buyers are delaying their decisions to buy the cars. And all this has lead to piles of stock in the warehouse of dealers.
Sudden increase of Rs.5 in price of diesel fuel has shaken confidence of diesel variant buyers. Previously, the gap between petrol and diesel was of Rs.26 but now it has been reduced to Rs.20. The uncertainty in the fuel policy of the government has created a wave of confusion in the auto industry and leaving buyers on shaky grounds.
One of the best selling products in diesel variant Chevrolet Beat is also facing the heat. Beat also comes in petrol version too. P Balendran, spokesman, General Motors India said that the diesel-petrol ratio in Beat variant sales was 85:15 but now it has became 80:20. He says that the discount which is going on since October also helped to reduce sales of diesel variant. He further added that, discounts ranging from Rs.20,000-1.5 lakh across various segments make December the best month to buy a car.
In spite of everything, diesel sales are still more than petrol. And it is expected to increase by March, says an industry expert.
