Diesel or petrol, is the one pivotal question that needs to be thoroughly assessed willing to ask self before taking a hasty decision or going forward with the prolonged orthodox mindset of diesel for better fuel efficiency. According to the latest findings of a survey done by CRISIL, it now takes six years to recover the premium between Rs 1,00,000 (small cars) and Rs 300,000 ( luxury sedans) paid for diesel variants, which is much more than twice the time it would have taken 3 years back.
"If one also factors in the time value of money, recovering the premium will take even longer. We expect the average petrol-to-diesel price ratio to reach a decadal low of 1.2 in this fiscal, and remain thereabouts on full (diesel) deregulation," added the CRISIL report. This may come as a shock to the diminishing number of automotive users who are still living in the typical diesel sasta padhega ideology.
But on the other hand, manufacturers are keen to push newer models in the market to keep in the news which makes it very difficult for the buyers to hold onto a car for six years and not get tempted. Generally, buyers switch to a new car in three to four years time. Gone are the days when diesel cars were a hot rage among buyers and have been struggling to maintain their mark in the industry for around an year now. From a pinnacle of 58 percent during fiscal year 2012-13, the share of diesel cars shrank to 53 percent this year, according to the CRISIL report. The government has been continuously raising the price of diesel by 50 paise a month since early 2013. While the move to deregulate petrol allowed consumers to enjoy frequent cuts in its price, inflation is still on the rise.
If sources are to be believed , Maruti Suzuki, India's largest car maker, has dropped plans to spend Rs.1,700 crore to expand its diesel engine plant. Looking at the sales figures of the Honda Amaze which have been drastically dropping from 80 percent to 50 percent recently, makes the drift in the mood of the customer evident, whereas the Mobilio alone manages to sell 80 percent in diesel for its MPV attributes. Sedans and sports utility vehicles, which are taking the hit, are also being available in petrol variants by the manufacturers. Ford Ecosport, for example, smartly offers a choice of two petrol and diesel engine.CNG and LPG variants also have made their way in buyers' hearts specially in the metros, due to easy feasibility.