Arab Today, arab today diesel car demand puts producers in dilemma
Last Updated : GMT 05:56:15
Arab Today, arab today
Arab Today, arab today

Diesel car demand puts producers in dilemma

Arab Today, arab today

Arab Today, arab today Diesel car demand puts producers in dilemma

New Delhi - Arabstoday

Carmakers in India face a quandary: diesel or petrol? In a market where once-rampant growth has been stalled since mid-2011, demand for diesel-powered cars continues to surge, with buyers willing to wait months to take delivery because of a widening gap between prices of gasoline and diesel. Even so, Maruti Suzuki and South Korea\'s Hyundai Motor Co, which together sell 70 per cent of the passenger cars in Asia\'s No 3 economy, are reluctant to invest to make more diesel cars, even if it means losing customers. \"We are still contemplating,\" Arvind Saxena, director for sales and marketing at Hyundai\'s Indian unit. As with many industries in India, the plans of carmakers hinge on uncertain government policy. \"If we invest, and in months, or years, the [diesel] price rises, we are left high and dry,\" Saxena said on the sidelines of the biennial India Auto Expo. India deregulated the price of petrol [gasoline] in June 2010, and prices have shot up 30 per cent since then. Diesel, widely used by farmers and manufacturers, remains subsidised. Petrol, viewed as the fuel of the rich in India, now costs 56 per cent more than diesel. However, the federal government is contemplating new taxes on diesel vehicles, according to news reports, and this could disrupt the demand pattern. The taxes could be announced in the 2012-13 budget that is expected to be handed down in mid-March. Ease of switching \"In the absence of any clear policy, we are at a dilemma,\" said Mayank Pareek, head of sales and marketing of Maruti Suzuki, controlled by Japan\'s Suzuki Motor Corp. \"Our engineering people tell us that if you set up a plant [for engines] with a capacity of 100,000 vehicles, it costs Rs10 billion [Dh714 million]. Now the call of this decision is Rs10 billion — to do or not to do?\" Diesel cars now account for about 40 per cent of sales in India, compared with less than 20 per cent a few years ago. Nissan Motor Co, which started making cars in India only in 2010, is better positioned. Its plant in Chennai can switch between diesel and gasoline engines. \"We\'re agnostic,\" Andy Palmer, an executive vice president at Nissan, said in an interview at the auto show. \"If the government dictates that the diesel price is X, we give you diesel. If it\'s Y, we say: here\'s petrol.\"

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today diesel car demand puts producers in dilemma Arab Today, arab today diesel car demand puts producers in dilemma

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today diesel car demand puts producers in dilemma Arab Today, arab today diesel car demand puts producers in dilemma

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Fighters celebrate Raqa victory

GMT 06:07 2017 Wednesday ,18 October

Fighters celebrate Raqa victory
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday