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Old 14th September 2013, 11:01   #1
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Exclamation Diesel:Petrol Car Sales Ratio. Major Shift in favour of Petrol Cars!

Here is an interesting trend for those who are interested.

The diesel-petrol sales split for 2013 so far:

Jan - 41845 : 10185 ~ 4 : 1

Feb - 13466 : 3900 ~ 3.5 : 1

Mar - 38714 : 8212 ~ 4.5 : 1

Apr - 40918 : 12025 ~ 3.5 : 1

May - 33846 : 11711 ~ 3 : 1

Jun - 49405 : 24197 ~ 2 : 1

Jul - 46675 : 22018 ~ 2 : 1

Aug - 66542 : 25314 ~ 2.5 : 1

Diesels were outselling petrols ~ 4.5:1 in March 2013. Then petrols slowly increased their sales performance and reduced the ratio to ~ 2:1 in both June and July. August saw the ratio again widen to 2.5:1 and with the latest pricing insanity, one can easily understand where this is heading again.

The diesel-petrol sales split is only for cars with both fuel options whose split figures were available for that month. The petrol sales also includes LPG-petrol and CNG-petrol bi-fuel vehicles which came with factory-fitted kits. Vehicles that come with only petrol engine options or only diesel engine options are NOT included in the ratio.

All numbers are from the monthly sales threads. Thanks to GTO and Parrys for the hard work in compiling the same and sharing them with us.

Last edited by RSR : 14th September 2013 at 11:13.
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Old 14th September 2013, 19:00   #2
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Default re: Diesel:Petrol Car Sales Ratio. Major Shift in favour of Petrol Cars!

RSR,

Thanks for that! I've moved your post out into its own thread. Surely deserves an independent discussion
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Old 14th September 2013, 19:23   #3
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Default re: Diesel:Petrol Car Sales Ratio. Major Shift in favour of Petrol Cars!

Welcome trend, as a petrolhead Just look at the petrol cars around..
  • Swift
  • Grand i10
  • Punto 1.4 petrol
  • Linea T-Jet
  • Etios
  • Polo TSI
  • Ecosport Ecoboost

All quite awesome petrol cars to drive, smooth & silent... for someone who drives less than 1500 kms per month, difference in diesel-petrol price doesnt justify the initial investment.
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Old 14th September 2013, 19:42   #4
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I think this trend is here to stay. Before petrol prices shot through the roof, most people never even considered buying a diesel unless they drove sizeable distances each month. Also, if I remember right, back then, diesel-engined models used to cost only 50-60k or so more over their petrol counterparts for most cars. This has now risen to around a lac. The discounts on petrol models bring the on-road difference to well over 1.5 lacs for many hatches and mid-sized sedans. Diesel price correction has made people think twice before paying such a huge premium for diesel cars. Not a bad thing at all, really, because I still think petrols are much nicer to drive any day, especially when they're turbocharged.
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Old 14th September 2013, 19:52   #5
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Default re: Diesel:Petrol Car Sales Ratio. Major Shift in favour of Petrol Cars!

I feel it was a phase (and has the ability to replicate itself) which coincided with our moribund government acting against its populist instincts and announcing a gradual rise in diesel prices over successive months and petrol prices dipping fleetingly tantalizingly. This gave confidence to prospective petrol car buyers, maybe petrolheads had some extra fun and perhaps dampened diesel demand a wee bit. I am relying on my memory and not looking at the exact chronology of the above events as I make these assertions.

However with the OMCs again in bloodbath mode with petrol and the administration gasping over hiking diesel prices with the impending polls, I expect the distortion to return again to previous levels. And now even Nano will sport an oil burner!

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Last edited by Rudra Sen : 15th September 2013 at 10:37.
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Old 14th September 2013, 20:58   #6
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Default re: Diesel:Petrol Car Sales Ratio. Major Shift in favour of Petrol Cars!

I welcome the trend of normalisation of the skewed ratio.Maybe this will reduce the "Diesel premium" of 1-1.5 lakhs .Some thoughts.

1. Diesel fuel will always be advantageous for a long time due to differential taxation and 5-6 kmpl advantage in FE.

2. The increasing number of two or more car families will lead to more petrol car sales as a second car.

3.Increasing no. of classy petrol hatches- A Prospective Diesel Sedan buyer has a good choice to buy a premium petrol hatch as an alternative,moreso if its a second car.Promotes petrol car sales.

4.More powerful petrol Hatches for the enthusiasts and AT options mostly in petrol cars promote petrol sales.

5.I think people are putting off expensive car purchases due to the slowdown-diesels take a bigger hit.

6.FE of newer petrol engines are improving but still diesel engines will have an edge due to more calorific value /litre.

7.Petrol cars have an average churn rate of three years among users.So ex - petrol car owners may be looking for a change but the increase in number of premium petrol hatches attracts them instead of buying a budget diesel hatch.

8.I think diesel car owners who have bought cars in the past 4 years are not in a hurry to upgrade/change cars due to loan rates and due to the increasing diesel costs.


I want the petrol sales to return so they can subsidise some of the "Diesel Premium" .Just like people who buy using cash at the Mall subsidise those paying with credit cards.
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Old 14th September 2013, 23:45   #7
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Default re: Diesel:Petrol Car Sales Ratio. Major Shift in favour of Petrol Cars!

Quote:
Originally Posted by drsingh View Post
I welcome the trend of normalisation of the skewed ratio.Maybe this will reduce the "Diesel premium" of 1-1.5 lakhs.
Diesel cars are not just costlier because car manufacturers like to charge a premium for them. A diesel engine is manufactured using better strengthened materials than a petrol engine, which tends to drive up costs. This is largely due the fact that a petrol engine undergoes combustion but a diesel engine undergoes "explosion".

Let me explain in a few words:
  • In a petrol engine, the fuel+air mix gets ignited in layers and hence, the combustion reaction is not that aggresive.
  • In a diesel engine, the entire fuel, when sprayed into the cylinder, automatically ignites. Self-ignition takes place due to the high temperature and the entire fuel in the cylinder burns instantaneously. This reaction is quite explosive and hence, thicker and stronger materials are needed to manufacture a similarly sized diesel engine.

Please let me know if you would like to know more about it.
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Old 15th September 2013, 00:26   #8
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Default re: Diesel:Petrol Car Sales Ratio. Major Shift in favour of Petrol Cars!

i don't think this shift back towards petrol will last, petrol prices were raised again by around Rs 2 last night, making it around rs 13 hike in last 3 months, while diesel prices are being hiked only around 50 paise per month.

With elections due in 2014, the government will not drastically hike the diesel price so whatever advantage the petrol had gained has been lost in last 3 months.
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Old 15th September 2013, 01:11   #9
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Default re: Diesel:Petrol Car Sales Ratio. Major Shift in favour of Petrol Cars!

While the data presented is interesting, this
Quote:
Vehicles that come with only petrol engine options or only diesel engine options are NOT included in the ratio.
actually prevents us from knowing the overall Diesel : Petrol split. Would love to know those figures
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Old 15th September 2013, 03:29   #10
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Default re: Diesel:Petrol Car Sales Ratio. Major Shift in favour of Petrol Cars!

Quote:
Originally Posted by rock75 View Post
With elections due in 2014, the government will not drastically hike the diesel price so whatever advantage the petrol had gained has been lost in last 3 months.

If india can't keep its promise of keeping fiscal deficit under 4.8%, things are gone get worse very soon and the repercussions will be felt by the people right at the time of the elections. Its better to do it as soon as possible. On the other hand inflation would go up if diesel prices are hiked. Reducing the deficit seems like the more important thing to do. Inflation could be fought from other fronts.
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Old 15th September 2013, 03:39   #11
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Default re: Diesel:Petrol Car Sales Ratio. Major Shift in favour of Petrol Cars!

People might be considering more of petrol cars right now for two reasons... AT is available and also there is a choice of converting the petrol to CNG. Diesel cant be converted
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Old 15th September 2013, 04:56   #12
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I also feel the driveability factor is key as many first timers also would be there, ladies would be better off with diesel due to the low down torque for easy driving in city due to lot of B2B traffic. The diesel is loosing on the price point. It is coming closer to the cost of petrol and with around 1-1.5L premium over a petrol engine with similar features, customers are thinking twice before purchasing a diesel.

Petrol sales have also boom'ed as a first timer (low budget) would be buying their first car and with a decent set of small hatches launched the petrol engine are also faring well.

As a few mentioned the lack of AT option in a diesel hatch. The Maruti/Ford and who ever don't give should provide a AT box and watch dales go up again for the diesel.

Anurag.
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Old 15th September 2013, 10:58   #13
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Default re: Diesel:Petrol Car Sales Ratio. Major Shift in favour of Petrol Cars!

Quote:
Originally Posted by gsurya View Post
In fact during last BJP tenure, BOTH Petrol & Diesel were decontrolled, rightly so. UPA brought in controls when crude zoomed to 120+ USD/barrel. So what BJP SAYS when out of power, is never what they DO when in power
Are you sure... as far as I remember Diesel was deregulated few years back, when the Congress Govt. was into power at Center & Maharashtra (both) for more than 5 years. And, price of diesel too has zoomed up by 40%, since then resulting in spiraling inflation.

Anyway, it would be unfair to bring politics into the picture, especially when it the Govt. & politicians who are the biggest fuel consumers in India, & it is paid from tax payers pockets, i.e. our pockets. As per a recent article in a leading newspaper that average fuel consumption per Govt. personal is 700 litres a month & that too free.

IMO Govt. should consider trimming down fuel consumption, simply put when a politician earns a lac a month, why he should not buy fuel from that money, if he is really into public service. Simply put Govt. should implement austerity measures ASAP to control spending, which can then be used for subsidies.

Moreover, the oil & gas companies always claim losses when they increase prices, but, their salary bill is much bigger in proportion to private companies, which is the result of insane bonuses & incentives .

My question - Why bonuses & incentives to employees when these companies are making losses? Aren't these bonuses & incentives jacking up the cost of product these companies are selling?

Another question, I have (again relating to Govt. fuel consumption) - why are family members of senior Govt. officers allowed used of Govt. vehicles... doesn't that add to wasteful expenditure from tax payers pockets?
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Old 15th September 2013, 11:16   #14
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Default re: Diesel:Petrol Car Sales Ratio. Major Shift in favour of Petrol Cars!

Quote:
Originally Posted by karthikpra View Post
If india can't keep its promise of keeping fiscal deficit under 4.8%, things are gone get worse very soon and the repercussions will be felt by the people right at the time of the elections. Its better to do it as soon as possible. On the other hand inflation would go up if diesel prices are hiked. Reducing the deficit seems like the more important thing to do. Inflation could be fought from other fronts.
Chidambaram has vowed to keep fiscal deficit at or under 4.8% and CAD at 3.7%. So far we seem to be on target. This plus around 5.5% GDP growth will make a decent show this fiscal.

http://www.thehindu.com/business/Eco...cle5061428.ece
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Old 15th September 2013, 11:17   #15
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Default re: Diesel:Petrol Car Sales Ratio. Major Shift in favour of Petrol Cars!

I guess the cars which run on dual fuel like LPG and CNG with a conventional petrol engine has also helped the cause for the recent popularity of petrol engined cars
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