Strong demand for petrol Tiago

Tata has been witnessing a strong shift in market demand, with an increasing number of customers looking to buy petrol models instead of diesels. In the carmaker’s line-up it is the Tiago which has seen the biggest shift.  Bookings have crossed 20,000 units, of which 80 percent is for the new 1.2 litre three-cylinder Revotron petrol variant.

This big tilt towards petrol now could be due to the ban on diesel engines over 2,000cc in Delhi-NCR. While the Tiago isn’t affected by this ban – as it uses a 1.05-litre, three-cylinder diesel Revotorq motor – the uncertainty over the future of diesel in the country, and the possibility of its application in other major cities has pushed buyers to make this shift.

Another possible reason for the strong demand could be down to the cost. The petrol Tiago is priced approximately Rs 80,000 lesser than the diesel variant, and is cheaper than its rivals.

However, this sudden surge in demand has caught Tata off guard. The manufacturer has produced more diesels than petrols and this has lead to a supply-demand mismatch.

The weakening demand for the diesel has been observed by other manufacturers in the segment as well. One such example is that of the Maruti Celerio diesel, which despite being one of the most efficient cars around, has failed to garner much interest, with sales of 7,459 units in an eleven-month period. Its petrol sibling on the other hand recorded sales of over 74,000 units in the same term.