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Old 5th May 2015, 15:50   #16
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Default Re: Indian market shifting to petrol: Impact on car manufacturers?

Narrowing price gap takes it toll in Nano Diesel project!


Tata Motors puts diesel Nano plan on back burner citing the current market price of the fuel, odds are heavily against the diesel Nano as one ot the reasons behind this!

http://auto.economictimes.indiatimes...urner/47159826
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Old 5th May 2015, 16:38   #17
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Default Re: Indian market shifting to petrol: Impact on car manufacturers?

My question, is the Indian consumer really so smart that he's started shifting to Petrol cars?

The shift to diesel wasn't really a calculative decision for most. Most used to "think" they'd save money, the reality might be totally different. I think its the notion more than anything which is why I'm skeptic, has the notion really changed?

Your neighbour buys a diesel, well, you ought to get a diesel! At least that's how it works in Delhi
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Old 5th May 2015, 18:10   #18
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Default Re: Indian market shifting to petrol: Impact on car manufacturers?

Let's see what the market thinks when the oil prices go up again.

That approximately 15% economy boost for a diesel will soon start to make sense .

Don't compare the situation in Europe as I think they have a tax based on co2 emissions, which skews the market heavily towards diesels.
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Old 5th May 2015, 20:11   #19
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Default Re: Indian market shifting to petrol: Impact on car manufacturers?

Quote:
Originally Posted by fine69 View Post
My question, is the Indian consumer really so smart that he's started shifting to Petrol cars?

The shift to diesel wasn't really a calculative decision for most. Most used to "think" they'd save money, the reality might be totally different. I think its the notion more than anything which is why I'm skeptic, has the notion really changed?

Your neighbour buys a diesel, well, you ought to get a diesel! At least that's how it works in Delhi
Catch 22 situation really in Dilli.

NGT ban on 10 year old diesels vs petrol price. Which ever side the vocal lot decides to take, others will follow - and very rightly observed - petrol diesel shortlist is rarely based on any usage based calculations. It's mostly gut feel couple with hearsay.
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Old 6th May 2015, 15:28   #20
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Default Re: Indian market shifting to petrol: Impact on car manufacturers?

Less discounts being offered, more demand to petrol as market tilts to petrol are the chief attributes to the Market leader - Maruti Suzuki's recent sales figures.
More so since Maruti Suzuki has more or less a strong portfolio in both petrol ans diesel variants their strong customer base is loyal and intact.


Quote:
The lower discounts on petrol vehicles could be attributed to lowering of difference between petrol and diesel fuel prices. This has resulted in an industry shift towards petrol vehicles. The proportion of petrol and diesel cars for Maruti is at 70 per cent and 30 per cent respectively

http://profit.ndtv.com/news/corporat...8875?site=full

Last edited by volkman10 : 6th May 2015 at 15:31.
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Old 12th December 2015, 21:38   #21
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Default Re: Indian market shifting to petrol: Impact on car manufacturers?

Shift to petrol - reasons now of a different kind, now due to NGT's ban on registration of new diesel vehicles. this would impact auto companies financials.

Companies like Hyundai and Honda, which derives sizeable portion of their sales from the petrol vehicles, so consumer shift to petrol vehicles may benefit them.

But the impact of diesel ban will be more conspicuous in companies such as M&M, Toyota and Tata Motors where share of diesel variant is significantly higher. For instance, M&M existing model such as XUV 500, Scorpio, Bolero and Xylo do not have petrol variant model.

http://auto.economictimes.indiatimes...cials/50151794
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Old 12th December 2015, 22:19   #22
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Default Re: Indian market shifting to petrol: Impact on car manufacturers?

This yo-yo will go on for a while. It will sway based on action and reaction. It will take a while until the policy makers and consumers find the right balance. Even in mature and eco strict markets like EU Diesel is prevalent in a sizeable fraction. All the brogh-ha-ha against diesel will quickly come under control say once a manufacturer brings in a technology ahead of the govt.

While Delhi is a boiling pot and partially due to an activist govt, that likes to experiment (which is good or bad depending on how you are affected) it can't be said to be the same across the nation. Look at Goa, where petrol price is so comparable to diesel and see the kind of vehicle distribution. In the end it always come down to cost of ownership in total that includes initial, running and re-sale or up keep.

What ever be the reason the demand for fossil fuels has not reduced but the global supply market is skewed due to political reasons. Crude production is kept up to stress the price hence stress the economies of certain nations for geo-political reasons. Google "why the crude price is low" and you will get links that explain various kinds of conspiracy theories.

Well, would we talk in the same tone today, if say in an year's time Petrol is 100 and diesel is 90? (which are numbers close to UK fuel prices today by the way). What worries people more today is not the environment, but what people according to their calculations think how the market will be 5 years down the line when they look at resale.

Majority of the people I know ( and I guess it would not be wrong to generalise it) always look at resale price and how others think of the car they want to buy. Second is the running cost. This uncertainty and perception based buying and the general "I know how the world is going to be in the future", like a self proclaimed prophecy is what is driving most of the buyers.

No matter what your level of knowledge is it impossible to predict how the market is going to be 5 years down the lane. Dieselization of India is not even a decade old and today there is already talk of movement to "back" to petrol? Look back say 2005 and your thoughts on buying a car, and see if you predicted today's situation.

How long will it take say for a EU based or US based think tank/authority to prove a certain diesel tech is clean enough on a weight carrying and cubic feet volume movement basis and for our NGT etc, all other (reactionary agencies) to reverse their "suggestions"? So, no matter what the debate is on, the decision to buy a car should always be based on ones need, financials and taste. The rest is useless.

Manufacturers are the worst affected lot. The smart ones will never invest in engine tech in India. Point in case Maurti, if say D goes out of taste, just stop ordering fiat engines (rather not invest in R&D money, they still have lines that churn the D hearts). We are not a country leading the Auto Tech space and I don't see we will ever be. So there is always a market to follow, and always a tech that can be imported.

But manufacturers who can get a balanced supply of tech in both Petrol based and Diesel based are the guys who have their bets hedged well. The rest will need to spend more $$ on lobbying. There are uncertain times for us consumers, but also cusp times.

My personal bet is on a Petrol, but for reasons I mentioned above, as a personal choice.
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Old 14th December 2015, 07:53   #23
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Default Re: Indian market shifting to petrol: Impact on car manufacturers?

Effect on NGT ban of diesel vehicles and if Consumers shift to Petrol Vehicles some manufactures would gain while others would lose on the market share.

The decision of the National Green Tribunal (NGT) to ban the sale of diesel vehicles in Delhi till January 6 may result in a loss of over Rs 60 crore to the passenger vehicles sector.

Quote:
If car buyers shift to petrol vehicles, the loss would fall to Rs 60 crore. Maruti, Hyundai and Honda will gain market share, given that they derive nearly 55-70 per cent of total sales volume from petrol vehicles. The industry-wise petrol and diesel ratio stands at 52 per cent to 48 per cent. Maruti, India's largest car maker, has 60 per cent market share in the petrol passenger vehicle segment and only 25 per cent in diesel passenger vehicles.
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Maruti Suzuki, Hyundai Motor India, and Honda Cars India would benefit the most, considering their focus on petrol cars, while diesel-focussed car companies, including Mahindra & Mahindra, Tata Motors, and Toyota Kirloskar Motor, would report lower sales.



http://economictimes.indiatimes.com/...w/50165095.cms

Last edited by volkman10 : 14th December 2015 at 07:54.
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Old 12th March 2016, 14:14   #24
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Default Re: Indian market shifting to petrol: Impact on car manufacturers?

Petrol cars outsell diesel ones in Chennai - a realignment in the making. Manufactures could align their strategy to this new shift.

Maruti Suzuki likely to address this with their new generation of boosterjet engines.

Quote:
Currently the petrol-diesel mix in new cars is similar to that of used cars --around 34% diesel to 66% petrol. But this is down from 70% diesel and 30% petrol in 2012.

Quote:
With petrol prices on the slide and local administrations cracking down on diesel, the petrol-diesel ratio in new cars is clearly gasoline-led.
http://auto.economictimes.indiatimes...ennai/51370378

Last edited by volkman10 : 12th March 2016 at 14:19.
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Old 4th May 2016, 08:52   #25
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Default Re: Indian market shifting to petrol: Impact on car manufacturers?

Auto companies realign its portfolio in wake of the market shift to petrol.

70% of Maruti Suzuki cars sold in the country are petrol driven. For Hyundai, the share is 66% and for Honda, about 65%.
With the preference switching back in favour of petrol, Maruti decided also to shelve plans to set up a diesel engine plant in Gurgaon.

This accelerated shift towards petrol has raised concerns about the recent investments made by auto makers to address demand for diesel vehicles.
Honda is likely to increase its petrol output by 40-60% starting June. The plan is to produce 680-700 petrol cars a day from 500-550 now.

The Indian unit of Toyota Motor invested Rs 1,000 crore to set up a diesel engine facility with capacity to produce around 1,00,000 units a year.
That factory is set to be inaugurated next month, at a time when the company's bestsellers, Innova and Fortuner, have been hit by the Supreme Court ban in the NCR on vehicles having diesel engines with capacity of 2 litres and more.

Tata Motors, which produced mostly diesel vehicles, introduced the new Revetron petrol engine in the Tiago and Kite 5 models.
The company sees incremental volumes of 50,000-70,000 cars coming from petrol in fiscal 2017

The share of petrol-run models was 42% of total passenger vehicle sales three years earlier.
Now Petrol-run variants accounted for 56% of India's passenger vehicle sales in the fiscal year ended March 31.

Indian market shifting to petrol: Impact on car manufacturers?-52101359.jpg

Honda invested about Rs 2,500 crore about three years ago to double capacity, set up a diesel component line and a forging unit.
The company, which earlier used to sell only petrol vehicles, brought in its first in-house developed diesel engine for the Indian market .
Honda Cars India is working towards changing its supplies more in favour of petrol-run vehicles.

The Indian unit of Toyota Motor invested Rs 1,000 crore to set up a diesel engine facility with capacity to produce around 1,00,000 units a year.

http://auto.economictimes.indiatimes...s-uvs/52101357

Last edited by volkman10 : 4th May 2016 at 08:54.
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Old 6th July 2017, 08:19   #26
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Default Re: Indian market shifting to petrol: Impact on car manufacturers?

Global PV sales continues to grow, diesel loses in the top 3 market, shift to petrol is evident.

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Source-Jato

Last edited by volkman10 : 6th July 2017 at 08:28.
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Old 6th July 2017, 15:40   #27
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Default Re: Indian market shifting to petrol: Impact on car manufacturers?

It is still an increase even though a lot lower growth than before. I would like to see double digit decreases on a yearly basis. That is the only way our pollution in cities goes down to tolerable levels
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