In recent times it has been observed that the price gap between petrol and diesel is decreasing, as the price of diesel is gradually increasing by 50 paise per month, while the price of petrol remains constant. With this in mind, auto giant Maruti Suzuki is expecting that the sales of petrol cars will soon match those of the diesel cars.
R C Bhargava, chairman at Maruti Suzuki said, “We had always expected this to happen, because the diesel option constituted almost 70 per cent of the cars which had diesel, this was driven by artificial pricing. Since the pricing gap is coming down, we will expect diesel cars to come back to 40-50 per cent. I think we are getting there”. Bhargava addressed reporters on the sidelines of the annual convocation of the National Institute of Industrial Engineering. The chairman informed that, according to current market condition, the sales are very depressing.
Bhargava went on to say that the sales driven by diesel cars in 2012 have either gone down or remained flat. This situation will not only affect the company, but will also affect other companies who have a strong diesel portfolio. It seems like diesel cars have lost their attractiveness on the market.