Diesel vs Petrol Cars in 2013 Scenario!

[IndicaDLS2002]

My prophecy seems coming true to a good extent ... price difference between Diesel fuel & Petrol fuel in mist cities is around Rs 15 today! Unless you drive a whole lot each & every day it just does not make sense to but a Diesel car anymore! I think we might see percentage personal Diesel vehicles drop very fast from this point onwards! (Unless of course Diesel car makers level the diesel car prices with petrol car prices!)


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What a coincidence just minutes after I typed this post & while the EDIT button was still active I get a call from the dealer of diesel car of which I took a test drive recently offering me a discount ! :) cool isn't it ! its happening just wait & watch

 

[IndicaDLS2002]

taking the poll above makes more sense than ever I guess

 

[dharmesh]

Diesel cars have lost their attractiveness: Maruti

Maruti Suzuki, the country's largest car-maker today said that "diesel cars have lost their attractiveness" and the current market condition is very depressed with decreasing sales. Maruti Suzuki's total domestic sales in May fell sharply by 13 per cent.

"It is not only for us but even for players with strong diesel portfolio. Diesel cars have lost their attractiveness in the market. It will take time for the economy to revive. We see a 5-6 per cent kind of growth this year too," Maruti Suzuki chairman R C Bhargava said.

The sales driven by diesel cars last year have either come down or remained flat, he said.

More Details : Diesel cars have lost their attractiveness: Maruti - NDTVProfit.com

 

[amit1km]

Re: Diesel cars have lost their attractiveness: Maruti

With increase price of diesel and decrease price of petrol, this is now the situation. I just pray that do not show the day when diesel will be more costlier than petrol.

 

[anshuman8]

Re: Diesel cars have lost their attractiveness: Maruti

Yes they were just riding on govt policies. Just buy diesel engines from Fiat, plonk them into cars and sell at fat premium.

Unlike M&M, TATA, Ford, Hyundai, GM who have their own in house diesel engines.

So if you buy some thing from outside paying royalty and then cant sell off you are bound to be in trouble.

Also MS plants will be closed for a few days this month.

 

[dharmesh]

Re: Diesel cars have lost their attractiveness: Maruti

Now the question I have is, there is contract between FIAT and Maruti, that FIAT will supply n numbers of engines to Maruti for next 1 year or so. Now if Maruti have no demands for Diesel cars, still have to pay for those diesel engines to FIAT. right?

 

[tarun7787]

Re: Diesel cars have lost their attractiveness: Maruti

Now the question I have is, there is contract between FIAT and Maruti, that FIAT will supply n numbers of engines to Maruti for next 1 year or so. Now if Maruti have no demands for Diesel cars, still have to pay for those diesel engines to FIAT. right?

I think the contract is for 1L engines per year that comes to around 8500 per month. Assuming that even after reduced demand for diesel cars, they would still constitute 40 % (down from 70%).

In may 2013 (said to be lower sales month) Maruti sold over 31K of Swift + Dzire and even 40% of them would be higher than the engines being supplied by Fiat.

Now my question is, in such a case if the sales were not slump, how does maruti manage to supply to market with just 1L diesel engines per year.[thinking]

 

[anshuman8]

Re: Diesel cars have lost their attractiveness: Maruti

Now the question I have is, there is contract between FIAT and Maruti, that FIAT will supply n numbers of engines to Maruti for next 1 year or so. Now if Maruti have no demands for Diesel cars, still have to pay for those diesel engines to FIAT. right?

I think there must be some minimum commitment, Fiat survives in India by selling engines to Maruti and TATA.

I think the contract is for 1L engines per year that comes to around 8500 per month. Assuming that even after reduced demand for diesel cars, they would still constitute 40 % (down from 70%).

These 1 lac units are above the licensed manufacture by SPIL (Suzuki Powetrain India Limited)

Fiat to supply diesel engines to Maruti Suzuki | Business Standard

 

[IndicaDLS2002]

Re: Diesel cars have lost their attractiveness: Maruti

Now the question I have is, there is contract between FIAT and Maruti, that FIAT will supply n numbers of engines to Maruti for next 1 year or so. Now if Maruti have no demands for Diesel cars, still have to pay for those diesel engines to FIAT. right?

I think diesel manufacturers & assemblers in India like Maruti can still find a way out if they can give discounts on the diesel car prices, the demand for diesel cars will be back to where it was earlier! Now yes they will make lesser profits which they need to bear some of it themselves & also evenly distribute the rest by negotiating fresh rates with suppliers like FIAT for engines in light of the new policy of diesel fuel subsidy being cut! In my opinion a few inefficient diesel carmakers might shut shop & the rest which are all big names might carry on. Its probably "survival of the fittest" now!

 

[dharmesh]

Re: Diesel cars have lost their attractiveness: Maruti

I think diesel manufacturers & assemblers in India like Maruti can still find a way out if they can give discounts on the diesel car prices, the demand for diesel cars will be back to where it was earlier! Now yes they will make lesser profits which they need to bear some of it themselves & also evenly distribute the rest by negotiating fresh rates with suppliers like FIAT for engines in light of the new policy of diesel fuel subsidy being cut! In my opinion a few inefficient diesel carmakers might shut shop & the rest which are all big names might carry on. Its probably "survival of the fittest" now!

Agree and also if we consider Maruti, they have pretty good petrol cars as well being sold form ages. So not major problem for Marutis, but the other companies who solely depend on diesel cars, a big dent in their pocket.

 

[MSN1]

hope this motor beam article fits here

source : Diesel Cost Of Ownership Is Less Than Petrol In The US | MotorBeam – Indian Car Bike News & Reviews

 

[navnit013]

Correct me here please.

As per my knowledge, Fiat doesnt produce and sell the engines to Suzuki. Suzuki has the license to produce 1.3 litre multijet engines. And MSILs plant has a capacity to produce 1 lac engines a year.

Fiat and Tatas joint venture at Rajangaon, produces engines only for the use of TATA and Fiat.

 

[dharmesh]

Correct me here please.

As per my knowledge, Fiat doesnt produce and sell the engines to Suzuki. Suzuki has the license to produce 1.3 litre multijet engines. And MSILs plant has a capacity to produce 1 lac engines a year.

Fiat and Tatas joint venture at Rajangaon, produces engines only for the use of TATA and Fiat.

I think so this is correct.

 

[Superbad]

Correct me here please.

As per my knowledge, Fiat doesnt produce and sell the engines to Suzuki. Suzuki has the license to produce 1.3 litre multijet engines. And MSILs plant has a capacity to produce 1 lac engines a year.

Fiat and Tatas joint venture at Rajangaon, produces engines only for the use of TATA and Fiat.

correct . but a year back , when maruti had a big long waiting list, Fiat used to manufacture those engines for maruti suzuki since the one lac engines was not sufficient then.

 

[IndicaDLS2002]

M&M the sales down but to my surprise the prices are hiked !!

Mahindra & Mahindra hikes car prices by up to 0.5 per cent - YouTube