New Delhi sources stated that the demand of diesel vehicles has been declining over the past few years and is expected to reduce to sub 25% level, post implementation of BS - VI norms. According to ICRA declined to 38% in FY2018 and is expected to fall further to 35-36% in FY2019 and will eventually go lower.
Meanwhile Subrata Ray, Sr. Group vice-president, Corporate Sector ratings, ICRA, said “Regular increase in the retail price of diesel in small doses every month since January 2013 has significantly narrowed down the retail price gap between petrol and diesel fuels, making cost economics of owning a diesel PV relatively less favorable now than in the past.”
Ray added “As there is a high correlation between
petrol and diesel price gap (price difference per litre of fuel), lower fuel
price gap has resulted in customer preference shifting away from diesel
vehicles. Moreover, given superior fuel economy of hybrid cars, hybridization
has also reduced importance of diesel models". Moreover recent adverse
regulation regarding ban on 2.0L+ diesel vehicles in the NCR region and Kerala
has further impacted diesel car sales, as it has direct impact on resale value
of cars.
