Petrol models find favour with car buyers

Last Updated: Mon, Feb 11, 2013 05:20 hrs

In the backdrop of gradual withdrawal of subsidy on diesel, petrol car variants are slowly gaining the market share vis-a-vis diesel models.

Since, the difference between petrol and diesel prices are narrowing, the car buyers have become more discerning, especially city car drivers.

"There is a marked preference among car buyers towards the petrol variants now due the narrowing fuel price differential between petrol and diesel, as diesel models are costlier than the petrol models," General Motors India Chief Financial Officer (CFO) Anil Mehrotra said here.

He, however, said the diesel cars were still being preferred by customers, who drive longer distances on daily basis.

Asked if the car manufacturers could also be expected to reduce prices of diesel models subsequently, he said the input costs of manufacturing diesel cars had not changed and as such it was unlikely soon.

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