MARKET TRANSFORMATION FROM PETROL TO DIESEL AUTOMOBILES

Project By
Ananthakumar GMR(MBA12007) Ashis Kumar Nayak(MBA12013) Girish K V(MBA12027) Nikhil Premanandan(MBA12059) Apurupa(MBA12113)

INTRODUCTION
The prices of essential goods and services are increasing along with the price of petrol.
The current price (Kolkata) of petrol is Rs 72.74 and that of diesel is Rs 43.74 Petrol, viewed as the rich person's fuel in India, now costs 56 percent more than diesel. Electric Vehicle have not gained success in India due to various reasons.

THE DEMAND CURVE

The demand curve shows the quantity of the good that the consumers are willing to to buy as the price per unit changes. Petrol and Petrol vehicles are complements.But Petrol and Diesel automobiles are substitutes.

The Maruti Suzuki SX4 petrol version costs around Rs.7.2 lacs to 8.5lacs whereas the new diesel variant costs round about 8.8 to 9.5 lacs. Mileage of the petrol variant is very low at 1011 but the diesel one could give you around 18-20. Initial price might be high in case of a diesel variant but after running it for about 5000 kms , you will be much happier with the savings.

STATS AND FIGURES

Diesel car volumes have grown by 35 per cent annually over April 2011-February 2012, petrol model volumes declined by 15 per cent in the same period. Diesel cars now form about 30 per cent of domestic passenger car volumes according to Crisil estimates. Petrol volumes are expected to remain flat on a year-on-year basis, while diesel volumes are likely to increase by 40 per cent in fiscal 2013. This will result in 12 per cent YoY volume growth for the domestic car Industry.

INDUSTRIES INVOLVED IN 2WHEELERS DIESEL TECHNOLOGIES

ROYAL ENFIELD It was the first two-wheeler manufacturer to introduce diesel bikes, in the late 1990s. They invested around Rs 350 crores in upgrading diesel technology. MAHINDRA AND MAHINDRA P S Ashok, head, research and development, Mahindra 2 Wheelers, says, We are looking into diesel technology. We (the automotive division of M&M) have a very strong diesel background. The company is investing about Rs 500 crore in R&D in the next five years in the development of traditional and alternative fuel technology. TVS In addition to diesel, companies are working on hybrid engines that would deliver 35 per cent more mileage than a petrol-powered engine. TVS Motors will be the first off the blocks, as it will test-launch dozens of units of hybrid scooter Qube in September.

CONCLUSION
It is evident now that leading automobile manufactures are switching towards diesel technology.
This growing trend could be short term or long term. It all depends on the price gap between these two fuels. Speculation is rife that the government may consider deregulating diesel too.

REFERENCES
1. Microeconomics, Robert S. Pindyck, Daniel L. Rubinfeld, Prem L. Mehta. Published by Dorling Kindersley(India) Pvt. Ltd., 7th edition.

2. Business Standard, dated on June 20, 2012, Article Petrol car Factories get holidays as buyers stay away page 2. 3. Business Standard, dated on July 6, 2012, Article Auto Firms diesel rush on Two wheelers are next page 1. 4. http://www.squamble.com/2011/03/09/petrol-or-diesel-whichsaves-more/

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