No economic logic now for diesel cars: Maruti Suzuki

NEW DELHI: With parity between the prices of petrol and diesel, there is no economic logic for buying diesel cars as with the same running cost, the acquisition cost differential is very high.

In an interview with IANS, Shashank Srivastava, Executive Director (Marketing & Sales), Maruti Suzuki India Limited said that under BS VI, the differential between diesel and petrol cars is to the tune of Rs 1.25 to Rs 2 lakh. Srivastava said that at the same running cost, with petrol and diesel at the same price, or even diesel higher in some states, there is no economic logic for buying diesel cars.

He said that till 7-8 years back, diesel was cheaper by Rs 32 compared to petrol and diesel cars were 60 per cent of total sales. Thereafter, the government allowed free float of fuel prices and last year the differential fell to Rs 7 and diesel car share fell to 28 per cent.

Srivastava said in the last quarter, it was only 17 per cent, the share has been falling due to the convergence between the petrol and diesel prices. In the smaller cars segment, it was only 5 per cent.

Currently, there is almost parity in diesel and petrol prices and in some states, diesel is even higher. Srivastava said there is no economic logic now for diesel cars to be bought. In BS VI vehicles, the differential is Rs 1.25-2 lakh, meaning that diesel cars are more expensive.

Srivastava said that with a similar running cost why would consumers want to pay extra. In higher segment for SUVs, some consumers still prefer diesel vehicles but in small cars and sedans there is no no economic logic, he said. (IANS)

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