India heading towards bigger car economy

[askicode]

Source: India heading towards bigger car economy: study : HindustanTimes.com

In an interesting article which states that India is moving towards mid-segment and bigger cars, preferably diesel, leading to higher energy consumption and pollution, a new study released by the Centre for Science and Environment.

According to the article the combined share of compact and mid-size car has increased from 53 per cent in 2001-02 to 63.2 percent in 2004-05.The share of small cars (800 cc) fell from 21 per cent in 2001-02 to 11 percent in 2004-05.

Though I am not sure how far its true. I see more of Swifts and Santros in Bangalore when we talk of sheer numbers

[theMAG]

Though I am not sure how far its true. I see more of Swifts and Santros in Bangalore when we talk of sheer numbers

Most of those Swift and Santro owners are first time car buyers - and herein lies the justification of that article. Their next cars will be sedans - and not the C category but C+ category and beyond. And the highest selling sedans in that category: Fiesta diesel, Verna diesel and City petrol. Their college going kids get a Wagon R or a Santro as well. Thats a combined 2900 cc more beyond an 800 cc car, per family.

[theMAG]

There's another thread with a similar train of thought: http://www.team-bhp.com/forum/indian...esel-cars.html (Demand for cess on diesel cars)

The govt has a solution with it - altho to recognize it as a solution must be preceded by realization of the actual problem: Remove the subsidy on diesel. Or atleast circulate subsidized diesel only in farm sectors.

[1100D]

Originally Posted by theMAG

The govt has a solution with it - altho to recognize it as a solution must be preceded by realization of the actual problem: Remove the subsidy on diesel. Or atleast circulate subsidized diesel only in farm sectors.

Or may be the other way round, i.e realize that Petrol alone is no longer a fuel for luxury, Diesel too is. Many personal vehicle users have diesel cars. Hence reduce the taxation on Petrol to bring it at par (or lower) with Diesel (after removing the subsidy on it).

[ajmat]

Originally Posted by theMAG

: Remove the subsidy on diesel. Or atleast circulate subsidized diesel only in farm sectors.

In the UK, they do this but the diesel that is subsidised is dyed purple. Hence any car with a purple exhaust or caught using this fuel is confiscated

[Ricky_63]

Originally Posted by 1100D

Or may be the other way round, i.e realize that Petrol alone is no longer a fuel for luxury, Diesel too is. Many personal vehicle users have diesel cars. Hence reduce the taxation on Petrol to bring it at par (or lower) with Diesel (after removing the subsidy on it).

I beg to differ, as diesel cars give a better FE than Petrol, case in point SKODA OCTAVIA 1.9 TDi & its petrol driven sibling...Hyundai Accent CRDi vs Hyundai Accent Petrol. I have 1st hand experiance on these cars.

Cheers