Diesel cars outsell petrol 4-wheelers in Gujarat

The frequent hike in petrol prices followed by the steep Rs5 per liter increase introduced recently has forced many owners of four-wheelers in the last one year to switch to vehicles using diesel or CNG.

It is true that diesel prices have also gone up but petrol has made a much larger hole in the pockets of vehicle-owners than diesel, which is relatively still cheaper.

“There has been a definite shift among consumers from petrol cars to four-wheelers using diesel or CNG. Earlier, the demand for petrol cars was far higher but now the situation seems to be the very opposite in the wake of petrol price hikes,” said Sandip Kumar, general manager (sales), Manan Autolink.

Kumar said that the situation now was such that petrol cars are more easily available to consumers than diesel or CNG cars for which there is a waiting list.

Sources in the city’s vehicle sector agree with what Kumar had to say. “Three to four years back, of the cars sold in the city, 65% were petrol cars and 35% used diesel or some alternative fuel.

But now petrol cars comprise only 40% of the four-wheelers sold. Diesel and alternative fuel cars dominate with 60% of the four-wheeler market share.”

Experts, however, fear that as users making the switch prefer diesel cars over CNG vehicles, the growing use of diesel will lead to environmental degradation. CNG is undoubtedly the best option as it us environmentally-friendly.

As for electric vehicles which can solve the problem for four-wheelers as well as two-wheelers, the lack of infrastructure for recharging and repairs hamper their adoption among consumers.

While most people in the city’s vehicle sector agree to the change in consumers’ preference, Paras Somani, executive director, Landmark Cars Pvt Ltd, thinks otherwise.

“No major shift from petrol to diesel cars has been observed. People are definitely not happy when petrol prices go up but gradually they come to accept the revised prices,” Somani said.
However, Rajiv Mitra, corporate communications head, Hyundai Motor India Ltd, said that the demand for diesel and CNG vehicles is greater than the supply.     

"The supply is currently constrained by the production capacity of the manufacturers. Hence, it is slightly early to say whether the demand for diesel and CNG cars is higher than for four-wheelers using petrol. But there is definitely a possibility of surge in demand in the future," Mitra said.