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Petrol Cars are in Demand
While car makers like Maruti is ramping up the production of Swift and Dzire diesel, the launch of K Series Petrol engines is now creating a lot of demand for the Swift petrol recently. Also, Maruti's another hatchback, Ritz petrol is in great demand, and its sales is equal to the diesel variant.
Analyzing the Indian auto market keenly, the demand for diesel variants for already established cars like Swift, Fiesta, Logan and Dzire is more, whereas the newly launched cars like Figo, Polo, Ritz see higher or equal demand of petrol variants as against diesel. One of the reasons for the increase in demand of petrol cars is the narrowing of prices between the two fuels. For instance, diesel's cost in India during 2006 was 15 rupees cheaper than the price of Petrol. But now,the cost difference is nearly Rs.11.56, which means, running cost between petrol cars and diesel cars is narrowing.
Also, since the urban car market is huge, driving in city means people prefer lighter and low maintenance cost cars, for which petrol is the best option. As, most of the hatchbacks are front wheel drive, the petrol engines are lighter than the diesel counterparts and also the clutch, gear operations and steering are easy to drive on a daily basis. Used diesel cars for sales won't fetch much profit to its owners whereas the petrol cars go for a good rate in the per-owned cars market. This is an added advantage and hence petrol cars are more value for money too.
According to statistics, sales of diesel cars has gone two fold increasing in the past 10 years, which accounts for 12 lakh cars sold in India. But, since the Government is eyeing on decontrolled fuel prices, customers are likely to opt for more affordable petrol cars to keep the cost of operations under affordable margins.
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