Car dealers primarily selling diesel variants are now quiet tensed due to the proposed hike in diesel prices. After Union Budget 2012 proposing an increase in excise duty from 2% to 12%, sales of diesel cars have declined. According to car dealers, drop in enquiries resulted due the uncertainty in the market. Dealers feel that increased diesel prices will hamper the sales of diesel cars and customers would switch to petrol models.
Maruti Suzuki, the largest car manufacturer of India has raised the price of its four diesel variants by Rs. 10,000. According to a city-based dealer of Maruti-Suzuki cars, Pravin Patel, after the Union Budget, enquiries regarding diesel variants have fallen. A local dealer for Hyundai cars, Aditya Kasliwal, said, "Though there is no impact on sale of diesel cars as of now, it will all depend on the forthcoming hike in diesel price".
At present petrol is Rs. 24 more expensive than diesel and with further reduction of gap between petrol and diesel prices, demand for petrol cars will increase, added Kasliwal. He further said that, during forthcoming the Gudi Padwa and Navratra, the picture would be clearer.
