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With the Delhi government recently banned over 10 year old diesel vehicles along with the softening of the gap between the Petrol and diesel it is believed this will accelerate the on-going shift from diesel to petrol vehicles.
it is also believed the resale value of diesel vehicles has dropped sharply post the Delhi ban, and that consumers in other parts of India might also fear similar bans.
About 70 percent of Tata's passenger vehicle sales are diesel. We see a high probability that customers might shift from Tata's diesel cars to the petrol cars of other carmakers instead of Tata's own petrol cars since Tata is not known for its petrol cars,
Around 77% of Maruti's diesel car sales are in the Swift and DZire models. We believe these customers will most likely switch to the petrol Swift/DZire.
Maruti may not benefit much either because buyers of the diesel variants of Swift/DZire's competitors (Honda Amaze etc) may not move to the petrol Swift/DZire
With all manufactures moving to highly efficient turbo petrol engines it is likely diesel variants will be relegated even further.
Year 2016 will be very interesting as the Passenger Vehicle will be seeing Hybrids too and will be getting more traction in the Indian market.
Global players like VW, Honda, Ford, Toyota would welcome this shift as they have the products/engines in their global lineup but their challenge will be the target cost.
Petrol shift to hurt Tata Motors; less pain for M&M, Maruti - Moneycontrol.com
it is also believed the resale value of diesel vehicles has dropped sharply post the Delhi ban, and that consumers in other parts of India might also fear similar bans.
Brokerage firm CLSA believes Tata Motors passenger vehicles business could be adversely affected by a growing shift towards petrol vehicles going forward.
CLSA sees the shift having limited impact on M&M even if some customers chose petrol variants of rival companies, since utility vehicles account for just 31 percent of the company's volumes.
Maruti will be the least affected, feels CLSA.
Year 2016 will be very interesting as the Passenger Vehicle will be seeing Hybrids too and will be getting more traction in the Indian market.
Global players like VW, Honda, Ford, Toyota would welcome this shift as they have the products/engines in their global lineup but their challenge will be the target cost.
Petrol shift to hurt Tata Motors; less pain for M&M, Maruti - Moneycontrol.com
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