Difference between cost of diesel and petrol cars could increase to INR 2 lakhs – Report

Aravind

Aravind Jayachandran, I'm a huge petrolhead, an automobile engineer, a massive fan of Ferrari, and loves collecting die-cast models for inspiration.

Jump to BSVI regulations will increase development costs on diesel engines.

With the narrowing price gap between petrol and diesel fuels, lower price of petrol-powered cars and the ban on diesel-powered cars over 10 years in Delhi-NCR influencing the shift to petrol-powered cars, top manufacturers are now finding it tough to stick to diesel-powered compact cars for the foreseeable future. Not to mention, the BSVI emission norms that will come into effect from 2020.

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The jump to BSVI will further increase the gap between the cost of diesel and petrol-powered cars, due to higher development costs on the former.

Making the jump to BSVI will significantly increase development costs in diesel-powered cars which, for entry-level mass market products, will not make a strong business case. This is expected to further increase the gap between the cost of diesel and petrol-powered cars.

Speaking on the future of diesel-powered cars in India, Mr. C V Raman, executive director of engineering at Maruti Suzuki, said:

It will put a lot of pressure on cost and development. The gap between petrol and diesel vehicles today is Rs 1 lakh; it will go up to Rs 2 lakh when the new regulations come in. The customer will decide if diesel is still relevant for him or not.

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Mr. C V Raman, executive director of engineering at Maruti Suzuki, believes that the price gap between petrol and diesel-powered cars will increase to INR 2 Lakhs.

It is likely that by 2020, a majority of the entry-level compact cars will be petrol-powered while bigger, premium sedans and SUVs would offer a diesel variant.

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[Source: Business Standard]

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