The Hindu Business Line : `Diesel car sales to grow 50 pc by 2010'

Global diesel light vehicle sales will increase from 12.5 million in 2003 to 27 million by 2015 with India and South Korea being the drivers in Asia.

Bangalore , July 14

DIESEL car sales in India are expected to grow by a whopping 50 per cent by 2010, keeping pace with a new global trend that is witnessing a huge revival of the segment.

A top official of Mico, an auto component major, told Business Line the current market share of diesel cars is around 31 per cent which is expected to rise to 45 per cent by 2010.

"We foresee, with current market trends in India and globally, a diesel share of around 45 per cent in 2010 in the cars and multi-utility vehicle segment," the official said.

Europe, which embraced diesel, earlier than other markets, will see its share growing from 46 per cent to 55 per cent by 2010, according to current trends.

Three years ago, share of the diesel car market in Europe was a mere 12 - 14 per cent. "We will see a huge demand for diesel cars in India soon," the Tata Motors Vice-President for commercial passenger car business unit, Mr Rajiv Dube, said. He said the demand will be fuelled more by the fact that diesel engines are at least 35 per cent more fuel efficient than gasoline.

"Even though diesel carries a price advantage, its engine is more fuel efficient and more environment friendly," Mr Dube said.

He said governments in the West are doling out huge incentives to the diesel car segment leading to a major spurt in sales which has been also been helped by the arrival of better performing common rail technology.

Keen to take advantage of the expected boom, Mico has already firmed up plans to set up a common rail injection system while India's largest car maker, Maruti Udyog is setting up a Rs 350 crore diesel engine plant in association with Fiat - General Motors Powertrain.

The Maruti Udyog Managing Director, Mr Jagdish Khattar, said recently that the diesel cars market would see a substantial increase during the next few years.

Mr Khattar said the new plant would produce 100,000 engines every year. "We want to sell diesel cars on its own merit," Mr Khattar said.

According to a JD Power report, global diesel light vehicle sales will increase from 12.5 million in 2003 to 27 million by 2015 with India and South Korea being the drivers behind this growth in Asia.

A DaimlerChrysler spokesperson said nearly 43 per cent of total CKD sales in India in 2003 were diesel-powered cars. DaimlerChrysler sells E270CDI and C 220CDI Mercedes Benz cars in the country.

Ford India's Vice-President for marketing and sales, Mr Vinay Piparsania, said customers prefer diesel run cars for travelling long distances indicating that the price differential between the two fuels was responsible for higher sales currently.