Petrol vehicles demand increases due to narrowing fuel price gap

Petrol vehicles demand increases due to narrowing fuel price gap

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Contrary to the trend in 2012, the demand for petrol cars is steadily rising. In recent times, the cost of diesel has constantly risen and the price of petrol has constantly fallen. This has reduced the price gap between diesel and petrol and now the car makers are looking for new ways to increase their production capacity by making them 15 to 20% costlier than their petrol variants.

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The sudden increase in the demand for petrol cars left some models on the waiting list, despite the fact that the car companies are increasing their petrol car production to meet the demands of customers who are mileage-conscious. For instance, General Motors is now working on its production plans as the petrol car sales have doubled in the recent months.

In just a year, the total sales of hatchbacks and petrol sedans have gone up by 20% to 35%. P. Balendran, Vice President of General Motors said, “We have flexible production for both the fuels at our Halol plant. To meet the escalating demand for petrol, we are increasing production of these cars in line with the changed customer preferences”.

Balendran added that they are also rolling out new petrol models of its newly-launched Sail sedan, that now has a waiting period of three months.