Business Standard

Diesel car models see downhill trend as gap between prices of fuels narrows

Hyundai Motor India bucks the trend, sees uptick in bookings

The share of diesel variants in passenger cars is receding

Several carmakers, including car market leader Maruti Suzuki India pulled the plug on diesel models citing higher costs for BS-VI variants leaving buyers with limited options.

Shally Seth Mohile Mumbai
Sales of diesel models for passenger vehicle makers are continuing the downhill trend as car buyers in India increasingly veer towards gasoline- driven models following a narrowing price gap between the two fuels. Analysts expect the ratio between petrol and diesel to get skewed further in favour of petrol.

A deregulation in prices of diesel from October 2014 has led to structural reduction in the price gap of diesel and petrol. The gap narrowed from a historic high of Rs 32 per liter in June 12 (pre-deregulation) and Rs 21/liter in July 2015 (post-deregulation) to an average Rs7/liter in FY20,

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First Published: Jun 25 2020 | 7:51 PM IST

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