The of late demand for diesel cars may slowly fade away on the cost factor. With the rise in fuel is repeated the price of diesel may at once come on par petrol. Till now the sale of diesel vehicles is mainly based on the fuel cost difference between petrol and diesel. When the diesel price increases substantially the customers would not take the difference on bigger terms since they shell out heavy amount for diesel engines, said the VP of General Motors. The switch over from diesel to petrol will materialize earlier since the monthly fuel cost is the main factor for small car segment.
At present, due to heavy movement of diesel vehicles in the last two years, there was 20-25% sale in 2007 and it was 30-35% now. The Executive Officer of Maruti asserted the position and said that the increase in diesel cost would definitely have a hit on the demand. This would change if any technology modifies the diesel engine in coming years. Maruti has the best differential analysis since it has both diesel and petrol versions for certain models, 55-65% are in diesel variants. However the officials in Maruti say that it would be too early to predict the impact of diesel cost. The same feeling prevails in the camp of Hyundai but there is a justification of cost of diesel vehicles on sophisticated technology. Ford India still believes that the diesel cost would not bring in any instant impact that there might be customers who are attached to the diesel versions.