Nov. 4--MUMBAI, India -- Its high maintenance and premium pricing always put brakes on your plan to buy a diesel car. But no more. With technology getting superior, fuel efficient and more environment-friendly, carmakers such as Mercedes, BMW, Hyundai, Maruti Suzuki are planning a slew of diesel launches.

While Mercedes is planning to roll out new E class in diesel, BMW is getting ready to launch diesel models in the forthcoming auto expo. Hyundai is gearing up to take a call on diesel Sonata and Maruti Suzuki is planning to launch diesel variant of SX4. In fact, BMW, Mercedes and Audi sell more diesel variants than their petrol counterparts. Sales of Honda CR-V (petrol variant), which till recently was a leader in the SUV (sports utility vehicle) segment, is under pressure with the launch of Toyota Fortuner SUV, a diesel variant.

Carmakers have begun stepping up production of diesel variants in recent months. A much advanced diesel technology is forcing car manufacturers to start looking at alternative solutions, says Ankush Arora, VP, sales, marketing and after-sales of GM India. GM's Optra diesel outsells the petrol variant by more than 75 percent.

Toyota-Kirloskar Motors (TKM), makers of Corolla, Camry, Innova and the Fortuner, which sells more than 99 percent of diesel variants says,"premium car buyers need higher torque and power and that can be developed much better through advanced diesel technology," said Sandeep Singh, deputy MD (sales and marketing) TKM. With demand outstripping supply, Toyota Kirloskar plans to increase production of the Fortuner by more than 60 percent this month.

Maruti Suzuki's fast movers Swift and Dzire are selling 65 percent diesel variants and others like Tata Motors, Mahindra & Mahindra, General Motors, Hyundai and Ford are jacking up production of the diesel models. Tata's Indica and Indigo, Mahindra's Logan, General Motors Optra,Cruze and Hyundai Verna and Sonata are seeing an increase in diesel model sales in the recent months. "Premium car buyers travel long distances, so fuel economy plays an important role. With diesel cost being lower than petrol, the payback is quicker," said Arvind Saxena, senior VP, marketing and sales, Hyundai Motor India.

Industry observers in India say the market is poised for growth and could see a 50 percent rise in sales by '10. A top official from car company said that the current diesel share is around 31 percent, which could rise to 55 percent within the next 2-3 years. While diesel powered passenger cars are common in Europe, they haven't caught on in the US as yet.

According to a recent JD Power report, global diesel light vehicle will increase to 27m by '15, with India and South Korea being one of the key Asian markets to witness this trend. More than 60 percent of the growth is expected outside of Europe, the report said.

To see more of The Economic Times, or to subscribe to the newspaper, go to http://economictimes.indiatimes.com

Copyright (c) 2009, The Economic Times, India

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

<< -- 11/05/2009>>