Factors Affecting Demand

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  • Topic: Suzuki, Maruti Suzuki, Tata Motors
  • Pages : 10 (1988 words )
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  • Published : October 2, 2011
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In India there are basically four types of fuel cars :-

1. Petrol cars

2. Diesel cars

3. LPG cars

4. CNG cars

Except these Electric cars are also going to be launched in India.



Demand of a particular commodity is firstly affected by price. It can be seen in the case of cars also. Petrol cars are cheapest among all other fuel cars available because its engine is simplest. After it comes CNG, LPG, Diesel and then Electric cars respectively.

Let us take an eg. Of MARUTI SUZUKI LTD., its cheapest petrol car is Maruti 800 is Rs. 201822.92 (ex showroom price Ludhiana, non metallic). Although production of this car has been stopped. The next cheapest car next to maruti 800 is Alto which costs Rs. 237877.05 (ex showroom price Ludhiana, non metallic). Still it is very cheaper as compared to Maruti Suzuki’s other fuel cars. Maruti Suzuki’s cheapest diesel car is Ritz which costs Rs. 539062.48 (ex showroom price Ludhiana, non metallic). In case of LPG cost of WagonR is Rs. 407184.68(ex showroom price Ludhiana, non metallic) & of CNG cost of WagonR is Rs. 426414.07 (ex showroom price Ludhiana, non metallic).

In the case of Tata Motors also price of Tata Nano , which is the cheapest petrol car in India, is Rs. 142,289 (ex showroom price Ludhiana, non metallic) and of diesel car Tata Indica Ev2 is Rs. 406,753.00 (ex showroom price Ludhiana, non metallic).

From the above examples it is clear that price of petrol cars is very less than as compared to other fuel cars especially diesel cars. That’s why demand of petrol car is high among other cars because India has got large no. of miidle class families which affords petrol cars due to its less investment.

Following table shows the ranking of cars as per their price :

|1 |Petrol car |
|2 |LPG car |
|3 |CNG car |
|4 |Diesel car |


The running costs of different fuel types refers to cost per km incurred while running the car. It is determined by dividing cost of fuel with milage of car.

Following table will help us to determine the running cost per km of different fuel cars:

|RANK |FUEL TYPE |COST (prices in DELHI) |MILEAGE (average) |COST PER KM | |1 |CNG |38.34/KG |21kmpkg |Rs.1.825 | |2 |LPG |40.10/KG |21kmpkg |Rs.1.909 | |3 |DIESEL |41.29/LTR |17kmpg |Rs.2.428 | |4 |PETROL |66.84/LTR |15kmpg |Rs.4.456 |

From the above table we can see that running cost of cng cars is much less than as compared to petrol cars. This is also important aspect considered by the consumers while purchasing cars.


Purchasing a car, is a start of a long relationship. Besides normal running costs, the car will also require regular maintenance, and this differs per fuel type.

Maintenance is mainly of two types - periodic (or scheduled) maintenance and breakdown maintenance. Periodic maintenance requires the replacing of all oils, worn-out parts, as per the expected good life of the same.

Breakdown maintenance is the replacement of damaged or failed parts or any other type of problems that arise suddenly.

The fact that petrol engine parts are cheaper than diesel engine parts make petrol engines cheaper for regular...
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