Petrol prices are rocket high these days. In spite of 2 rupees relief in the prices of petrol, the petrol price is staggering 67.78 Rs/Ltr.
Now the car manufacturing companies have been launching various schemes where they lure the customers to buy petrol vehicles, in return they would not be affected by any increase in petrol prices. There by insuring the customers against any rise in petrol prices. Coming back to the topic, I have been collecting some facts and figures and once you ponder over them make will definitely make you question “Is it the end of the petrol cars in India??”.
The bestsellers are the worst losers. Indeed Alto, WagonR and i10 whose monthly sales in 2011 were 1, 78, 293, 80, 382, 80, 936 respectively. Their growth are in minus and in 2012 with increase in petrol prices their monthly sales are now 1, 61, 330, 69, 708 , 52, 233 respectively thereby having negative growth of 9.5, 13.2, 35.2 percent. Although Swift sales have increased from 2011 at 71.3 percent growth rate. But this is partly led by the launch of new diesel variant of Swift. The same is the case with Dzire with their sales showing a growth of almost 59.4 percent led by its diesel variant. MUV’S such as Innovas, Bolero’s too stood out from the crowd with their sales showing growth of almost 57.6 and 18.3 percent. Toyota’s exceptional growth has even startled the company and they are planning their production process accordingly.
In fact the only stable petrol vehicle which showed positive growth in terms of sales was Tata’s Nano. Their sales increased from 45,651 to 49,555 having a growth percentage of 8.5. Clearly one can imagine the scenario where in Indian roads would be ruled by Diesel variants. Barring their high price, people are opting for diesel cars only. People are going for value money as the cost of Diesel is somewhere around forty rupees. The share of diesel cars in overall sales has gone substantially from just 38 percent in 2009-10 to over 52 percent this year, at a time when the industry is witnessing sluggish growth.
I hope there is no rise in excise import duties on diesel vehicles as petrol vehicles have not helped in improving consumer sentiments. Anything that puts extra burden on consumers will not help.