Maruti’s diesel cars sales dropped to 50 percent in the first quarter of the current financial year, down by 3 percent compared to the same period last year.
The plummeting gap between petrol and diesel prices through the whole year have once again shifted the market dynamics for the sale of petrol and diesel vehicles in the country. India’s largest car maker by volumes, Maruti Suzuki has seen a steady shift in customer preferences with the demand for its diesel cars declining in the current months. On the sidelines of its latest launch the Ciaz, the company stated that the sale for its diesel powered cars dropped to 50 percent in the first quarter of the current financial year, down by 3 percent compared to the same period last year, and 8 percent lower compared to the 2012-13 fiscal.
The price difference between petrol and diesel prices has come down to as low as Rs. 9/- in some states. Maruti suggests that if the price difference continues to diminish, the diesel market will stabilise with around 45-50 percent market share in the company’s total sales for the year. Diesel cars saw peak demand during the 2012-13 fiscal; however, since then the disappointing market sentiment and price fluctuations have made a prominent impact on the sale of vehicles for all manufacturers.
With respect to the financial year 2013-14, Maruti Suzuki retailed a total of 1.2 million units across all segments and was the largest seller of diesel powered vehicles in the country in terms of volumes. The company registered a growth of 44.7 percent in the first half of the current financial year (2014 April-September period), while the automobile industry witnessed single-digit growth during the same period. The company’s hard work in rural areas has also paid off well with the rural market registering a growth of 34 percent during April to September this year, compared to the same period last year.
Nonetheless, the declining market share of Maruti’s diesel powered vehicles have not deterred the company’s long terms plans to bring new diesel engines to the country. Maruti Suzuki in on the advance stages of developing the 798cc two-cylinder diesel motor that will debut on its upcoming LCV and Celerio hatchback that are scheduled to debut in the first quarter of 2015. There is also a new 1.5-litre diesel engine for India, while a 1.6-litre derivative of the same engine will do duties in the European markets.
