Fall in diesel car sales with the new tax buzz
|   Friday, June 29, 2012
The trend set for petrol vehicle is not just enough, rather the cars running on diesel are not getting as much response as it used to get before. In order to manage the inventories in the market, the leading producers of diesel cars have started to get a rationalization effect. This is also maintained even after the production of petrol cars goes down.

There is also a slow moving trend with regards to executive and premium segments of cars. Generally as per market trend, it is considered to be a tool in raising the cost of car ownership.
But even for these cars customers have stepped their feet back.

As per the data published by Society of Indian Automobile Manufacturers (SIAM), there is a positive trend for production of various passengers car in May. There was a positive association of many car manufacturers with the production cuts to maintain the inventory level. There was a cut of around 6.5 percent for the production of Maruti Suzuki cars. Since this has been viewed with regards to the petrol models, there was also an assumption of sales in petrol car models.

We can also get a view that; the production of Ford India is with 17.33 percent. The production of fiat cars in Indian market has come to less than half that the assumption amount. As compared to the production of Volkswagen India in the previous year May, this year the production has come down by 30 percent.

It is an astonishing fact that, the sales of SUV cars in the market had provided a positive trend. There is a great demand for the model Mahindra SUV 500 and Maruti Ertiga in the market. The main engine of both the car runs on diesel. Thus, even if the diesel car has got a negative trend in the market, this particular segment has not been affected with the same. Other passenger vehicles such as Tata Ace Magic and Maruti Eeco have been viewed to have a less selling effect in the market. Even if the production of passenger car rose to 5 percent, but the sales growth had amounted to 2.8 percent.

You will also be amazed to have a report about the UV sales in the market. The sales went up to 55 percent of the total unit. In the comparison, there was a decline in van sales by 16 percent. The availability of all the diesel models from the manufacturing concern of General Motors and Tata Motors have become off the shore. If you compare the trend that has been set few months ago, you will absolutely get a different picture.

As per the prediction, if government decides to impose tax on the diesel vehicles there will definitely be a fall on overall sales. There are many customers who do not wish to go ahead with the petrol engine models. There has been a proposal from many people who wish to get a model that runs on both petrol and diesel. This can be sold for agricultural use.
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