Maruti Talks About Reduction In Petrol Cars In Recent Press Release: Not The Only One In Automobile

By Author: Vicky Martin
Total Articles: 6
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In a recent press release in India the country's largest car maker Maruti Suzuki has informed of reducing production of some petrol models. Maruti’s Managing Executive Officer said, “Petrol car sales are very low in these days as the market sentiment is down.” The company has cut production of 8,000-8,500 units of petrol cars in these three days.

This automotive news does not come as a surprise. The persistent rise in the price of petrol and a rather steep hike recently has resulted in the price sensitive Indian consumer making drastic shifts in demand patterns. Latest automotive news confirms that customers now prefer the diesel variants of popular cars. In fact, Maruti Suzuki is not the only one. Almost all car manufacturers including big names like Tata Motors have followed suit in reducing the production of petrol cars. Also following the stream is General Motors India, which will be initiating NPDs (no-production days) to restructure the production pattern in accordance with current economic scenario.

Much of the edge enjoyed by diesel cars is because of the low price of the fuel compared to petrol. ...
... After its decontrol in June 2010, the price of petrol has been raised several times, but diesel price has been increased only sporadically. The latest hike has widened the price gap between petrol and diesel to nearly Rs 30 per litre which is influencing buyers' preference for diesel run cars. Also, diesel cars more often than not enjoy better resale value compared to the petrol version. Not only is it easy on the pocket, but also diesel engine technology has improved significantly leading to better fuel efficiency. With this comes the alternative advantage for consumers to strike a better bargain on petrol cars.

Will diesel cars continue to hold this edge? As per recent Government press releases India, oil marketing companies (IOC, BPCL and HPCL) are losing lot of money selling diesel at subsidised rates and there is an increasing clamour to hike the price of diesel. Such hikes, if implemented could dent the advantage diesel cars have over petrol ones. The extent of these hikes or taxes, though, needs to be significant for diesel cars to lose their competitive position against petrol cars.

The author of this article is expert in writing articles about automotive news and press releases India. Author has also written many articles about new cars in India.