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Demand for diesel cars slows down

by TNN Photography: Kunal Khadse Posted on 26 Dec 201222,196 Views8 Comments

The rush for diesel cars in the Indian market is fizzling out due to uncertain fuel policies and prices, resulting in unsold inventory and cars being sold at discounted prices


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Diesel's dream run in the Indian market appears to have come to an end. Auto financiers and car marketers say the rush for diesel cars has fizzled out and most diesel models are now off the waiting list and on to the discount heap. And, the confusion over the fuel policy has potential consumers worried that the government may slap a diesel tax or hike prices of diesel suddenly. That in turn has taken some sparkle off diesel vehicles. 


"The new trend is that even diesel vehicles are not moving that fast and dealers of most diesel models are stuck with stocks," said Ashok Khanna, senior executive V-P and business head-auto loans, HDFC Bank. "December is traditionally a dull month and this year has been slow till four-to-five days ago when the flows began to pick up speed. The footfall in dealerships are not going up as expected — buyers seem to want to defer their purchase." 


Car marketers say the problem is that the fizzling of diesel demand has not led to a rise in demand for petrol vehicles either. "Earlier all diesel vehicles had a waiting list but now most of them, except a few exceptions, are on discount and demand for diesel models is under a lot of stress," said Mayank Pareek, COO, marketing and sales, Maruti Suzuki.


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