Boom in the diesel cars in automobile industry

Presently the automobile industry of diesel car segment is facing a drastic change. This in turn will increase the demand of diesel in the market. With the hike in petrol prices now all the premium car manufacturers are turning towards diesel engine. With the petrol hike almost the prices of basic food items, like veggies, milk etc will also go straight up.

India is considered as the second fastest car market, next to China, with nearly 60 domestically assembled and 60 imported ranges of vehicles. Though, the past financial year proved to be a mammoth phase for the Indian car market with a sale clocking 2.5 million units of passenger vehicles .  The export market for the Indian car market too has reached the mark of 440000 units. You can find the Indian roads filled with a rough, 15 million cars and 8 million trucks and buses. With growth in the Indian car market, the export segment saw the penetration of the hub prospects for Hyundai i10 and i20, Ford Figo and Maruti A-Star. It was evident that the diesel portfolio is also getting better and better with time. As per the examples of diesel luxurious cars in India the Fiesta Diesel has a very smooth and silent drive and in-fact was better on highway compared to the Petrol version.

With the increase in prices of petrol and increasing running cost, manufacturers of car are bound to keep the mileage high by tuning the engine more on the economy side as compared to the performance. By keeping in mind these factors, the Indian auto industry is under a gradual shift with the inclination of buyers as well as car manufacturers drifting towards the diesel car engine.

Most car manufacturers are now focusing their energies on research and development of its technologies and improved diesel engines in terms of NVH performance levels, and the slow elimination of diesel engine cars. Indicating the current scenario, Nigel Wark, Executive Director of Ford India cited: Oil prices are becoming higher and this has driven the share of cars sold for diesel models. The next products will be mainly on the diesel platform. This has created a lot of stress for the manufacture of diesel vehicles.

Its not only Ford which is focusing on diesel, rather its almost all car makers who sell cars in India are serious about it and already geared up their cars with diesel engines to get a bigger share of market as the buyers are buying more diesel cars than before. The upcoming small car Chevrolet Beat Diesel, already high selling Ford Figo Diesel, then long waiting for Maruti Swift Diesel and Maruti Swift Dzire Diesel prove that the buyers and sellers are inclined of both on gaining diesel cars.

Present diesel cars with advanced technology are not sluggish and noisy like they used to be 10 years back, hence this also supported in increase in buyers of diesel and it is giving a boom to the diesel cars in the automobile industry.

Same diesel is also consumed by trucks, busses, diesel generators, agricultural pumps etc. Except for generators, all others contribute directly towards our economy. The consumption by all the sectors mentioned above is a way higher than by cars/suvs. So even if the boom continues for a few more years lies this, it will still not have a very great impact on the diesel prices. Given the government's inhibitions on rising diesel prices it is highly likely that they will continue to increase the petrol prices more than diesel to cover up for the subsidy. In such a scenario increasing tax, or may be introducing a new tax to cover for diesel subsidy would not deter buyers from buying a diesel car. Even the inhabitants living in the hills driving a petrol car out there is just not feasible. They have to travel in diesel cars due to higher torque requirements on such terrains.

Let’s see how things shape up in the years to come and how the Petrol prices change in coming years to give this balance of petrol-diesel economics another swing.

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