Using the diesel or LPG version is cheaper by 40-50%, but they score lower on other measures.
High interest and fuel costs are hurting car owners badly. no wonder manufacturers are advertising diesel versions to attract buyers. For instance, the Chevrolet Beat's diesel is being marketed with lines like 'leave behind the worries of ever-increasing fuel prices'.
The alternative is liquefied petroleum gas (LPG) and compressed natural gas (CNG) modifications. These have to be weighed carefully. A buyer should take into account monthly usage and availability of LPG and CNG.
Pricing/cost of running: There are also other costs to be considered, such as the one for buying a conversion kit. This is is a one-time cost, of Rs 26,000-55,000 for CNG kits and Rs 18,000-35,000 for LPG ones are priced at Rs 18,000-35,000. Diesel models are usually priced at Rs 1 lakh more than the petrol versions. The cost of running a petrol car is the highest, though. A car on petrol will cost you nearly Rs 5 a km. The same car with a diesel engine has a running cost of Rs 3.5. If one considers a CNG option, the running cost is the lowest, at Rs 1.
Usage: Sumit Bali, director, Kotak Mahindra Prime, says it only makes sense to buy a diesel car if you drive at least 2,500 km a month or 85-90 km a day. And, a CNG or LPG version would be ideal for someone driving over 3,000 km a month or over 100 km a day.
LPG versus diesel: While diesel is priced at 45.99 a litre (in Mumbai) and LPG at Rs 41/litre, the mileage for a diesel car (Beat) is much more, at 24 km; for LPG, it is 13.3 a km. An interesting trade-off.
Though the differential in price of diesel and LPG is not substantial, it would make sense for the buyer to use the latter option only if a heavy user. Otherwise, diesel would fare better. The cost-benefit analysis has to be worked out carefully. LPG is cheaper than diesel by nine per cent, whereas mileage is less by almost 40 per cent.
Resale value: On the other hand, the case for buying a petrol car is mostly for other reasons. With petrol prices having risen 13 per cent since January, there is no comparison in terms of sheer cost. But factors such as resale value alter the picture. "If one if looking at selling the car within the next three to four years, it makes sense to stick to a petrol car," said Bali. The resale value of a CNG/LPG version slips sharply once the engine is changed. Also, experts said, on an average, a person keeps a car for only about five years. And, the higher sticker price of the diesel model means you have to pay a higher monthly instalment for it.
| HOW THEY COMPARE | |||
| The alternatives are liquefied petroleum gas (LPG) and compressed natural gas (CNG). These have to be weighed carefully. A buyer should take into account monthly usage and availability of LPG and CNG. | |||
| Low user (up to 40 km/day) Petrol | Medium user (40-100 km/day) Diesel | Heavy user (more than 100 km/day) LPG | |
| On-road price of car (Rs lakh) | 5.62 | 5.89 | 5.47 |
| Fuel Price (Rs) | 71.47 | 45.99 | 41.34 |
| Mileage (km/litre) | 18.6 | 24.00 | 13.3 |
| Fuel consumed in a day | 2.15 | 3.75 | 9.3 |
| Running cost in a day (Rs )* | 153 | 172 | 388 |
| For 50 km a day (Rs )** | 192.1 | 95.8 | 155.4 |
There is also availability. Says Abdul Majeed, auto practice leader, Pricewaterhouse Coopers India, "At the moment, LPG and CNG are not available at many fuel pumps. In Mumbai, it is available only in Dockyard and Thane." However, in north India, there are more pumps catering to the needs of customers.
Maintenance: "Earlier, the maintenance cost on diesel engines was higher and they were also very noisy and harsh. With the quality of diesel improving, it makes sense to go in for a diesel variant if you are planning on keeping the car for a longer time and also if you intend using it a lot," says an auto analyst.
Maintaining the CNG/LPG version would cost you between Rs 4,000 and Rs 5,000 for each servicing. For a petrol car variant, it is around Rs 3,000. There is also a perception issue with CNG or LPG cars regarding safety, as a gas cylinder kit is fitted into the car.
