The automobile market may look sedate and unexciting on the surface, but internally it is witnessing two tectonic shifts: one, diesel is becoming the preferred fuel for passenger vehicle owners, and two, SUVs are seeing rapid growth.
The two are, in fact, linked; they're both the side effects of poor government policy.
SUVs are not known for their fuel efficiency, but the subsidy of Rs 11.65 per litre on diesel makes them economical to run.
It is cheaper to fill the tank of an SUV with diesel than a sedan with petrol.
Image: The Chevrolet Captiva.