Market Shifts To Petrol and Hybrid: What Carmakers Will Be Affected Most?


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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.

Brokerage firm CLSA believes Tata Motors passenger vehicles business could be adversely affected by a growing shift towards petrol vehicles going forward.
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,
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.
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
 
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Re: Market shifts to Petrol and Hybrid - Which manufactures be affected most?

It will post no threat for anyone. The likeliness of the same rule applied in all over India is 0%. Why? Because almost 80% of govt vehicles/private buses/pvt/taxi and what-nots are at least 10 years old, and this ban this seriously damage the businesses of these people. And think about scrapyards!

Only reason this rule was imposed on Delhi, is because, this is capital city. No one want to show a polluted capital city to visitors/traveler's. This will give you an impression that the place is well maintained and same is carried over throughout the country(which is not!). It is an act to save tourism in my opinion!

If the govt seriously worried about Diesel emission, they should have imposed some heavy taxes to already taxed diesel vehicles after certain period, which will lessen the usage. Like this :
If the vehicle is >10yrs old and the owner want to run this vehicle for next 1 year, impose a CO2 tax @ 25% of IDV or something like that.
 
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Re: Market shifts to Petrol and Hybrid - Which manufactures be affected most?

To the addition to what furious driver said imposing additional tax over the tenture period of 10 years isnt going to get implimented as why banning it in the first place then if they want to addon tax so thats not going to happen.
What he said is correct taking the capital city and to show it on the world platform.What about the huge piles of vehicles from government bodies, corporations which are above 10 years?
 
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Re: Market shifts to Petrol and Hybrid - Which manufactures be affected most?

Putting everything aside; I can't digest the fact that utility vehicles (Muv, SUV, pick ups) do account for only 31% of M&M's volume!!
Something wrong with their data I guess.
 

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