Declining Diesel vehicle sales: End on an Era??
M aruti recently announced to phase out its Diesel engine production and sales in India by 1 st .April.2020. A day later comments from Tata Motors went into the same direction quoting that producing Diesel engines especially the smaller ones are not justifying the investments involved. Automobile production is a capital intensive business and inadequate ROI is bound to worry automakers. These concerns and steps are not happening just like that. Following are some of the key Reasons for diversion of focus from Diesel vehicles to other fuel systems: · Deregulation of the Diesel prices in India brought Diesel prices near to that of Petrol, and it has been a key reason for decline in the sales of Diesel vehicles . Diesel cars are more expensive than the Petrol cars but due to low Diesel prices as compared to Petrol, lot many customers preferred to buy Diesel cars knowing the fact that running cost will be lower in the case of Diesel vehicles. But that advantage is gone now