Diesel car sales in India has seen a drop over the last four years. Earlier, one in two cars sold was a diesel car, and now, the ratio has gone to one in four cars. One of the main reasons for this changing trend is the narrow price difference between petrol and diesel.
Another reason is also the ban on diesel vehicles above 2000cc in Delhi.
The shrinking demand for diesel vehicles has lead to stock build up with automobile dealers, who are offering discounts to push sales. Industry experts say that this new trend is here to stay.
According to the Society of Indian Automobile Manufacturers (SIAM), diesel vehicles accounted to 26 percent of car sales in May 2016. Four years ago during the same time, diesel vehicles accounted to 52 percent sales.
The price difference between petrol and diesel started narrowing down after the government decided to withdraw its subsidiary for diesel. The narrow price gap also means that the cost to run a vehicle per kilometer has also come down.