Maruti Suzuki India has increased the dealer margins on petrol cars for the first time in past 10 years. There are multiple reasons for this increase, one is the naturally increasing demand for diesel engine cars in India especially after massive petrol prices hike in past one year. Other reason for this margin increase is the rents of commercial spaces have gone up quite considerably in past few years, because of which dealers are facing costs pressures in efficiently running their dealerships. A increased margin will help them with better revenues, will also help motivate dealers into selling more petrol cars and convince car buyers to opt for a petrol variant.
The ratio of demand for diesel and petrol cars (for the same car available in both diesel and petrol option) has gone up as high as 80:20 which is quite considerable and has been causing long waiting periods for the diesel cars in India. With this added incentive to earn better margins on sales of petrol cars, Maruti Dealers will not stress more on selling the petrol variants.
This demand bias for Diesel cars may get hugely impacted if the proposed additional duties of between Rs. 80,000 to Rs. 1,60,000 are implemented on Diesel cars post the union budget of the year 2012(click here for details). The budget is due for March 2012 and may change this equation of low cost of ownership for many years to come ! We will bring you all the latest happenings on diesel car taxes in India. You can stay tuned to us by liking our official Facebook Page and sign up for our free email newsletter. Check out more-