Petrol Vs Diesel Cars

Petrol Vs Diesel Cars in India 2016 – Which is better?

Petrol Vs Diesel Cars in India 2016 – Which is better?

Cars have become a common itinerary in the wish-list of the middle class population of today’s cities. But it is a common problem with the general mass on choosing between the petrol and diesel variants of a car. Getting opinions of the near and dear ones might seem confusing rather than enlightening, and so here is a guide to choosing your dream vehicle.

Before giving the titbits, there are certain considerations that have been taken into account.

  1. The inferences have been arrived at by considering the pocket of a normal middle class person in India, who plans to buy a car.
  2. The car models have been decided by the prevalence in Chennai city and its suburbs.
  3. The numeric values are based on the current trends in the Indian market (that is, considering May 2016)
Petrol Vs Diesel Cars in India 2016 – Which is best?
Petrol Vs Diesel Cars in India 2016 – Which is best?
Price of the car:

This would vary depending upon the buying capacity of the consumer. But for Chennai, or in general, India’s traffic, a 4-seater hatchback in the bracket of 5 to 7.5 lakhs would be the affordable choice for everyone. Moreover, the cost difference between the petrol and diesel variants which is about 60,000 to 1 lakh INR for the cars below 8 lakh levels tend to increase as we increase it beyond 10 lakhs. For ultra-modern, savvy cars that cost around 25 lakhs, the price difference is generally around 1.7 lakhs to 2.5 lakhs.

Diesel variants usually cost more than the petrol ones because of the former’s enhanced efficiency aspects.

Distance traveled per day:

The daily sojourn comes into consideration here along with a few other extra trips that one would make periodically in his/her car. The routine travails imply the distance covered by an office-goer from home, from the taxi depot to the designated stand in case of a taxi, etc. The other trips include weekend visits to picnic spots and unexpected emergency situations.

Cost of petrol vs diesel per litre :

Before the government deregularization came into existence, the price of diesel used to be as much as 16 to 20 rupees lesser than that of petrol in the subcontinent. But now, the margin has come down to a maximum of 13 to 15 bucks. This is one important aspect that needs to be considered along with the general price bracket of the car.

Mileage of the car:

The ideal mileage specified would have certain condition attached to them.The mileage specified cannot be achieved at any point during city drives, where intense traffic is the common scenario throughout the day. Mileage would also depend on the quantity of load that the car needs to carry other than the kerb weight (the weight of the car with no load) and the other external factors like optimum usage, smooth driving and efficient, serviced components. Increase your car mileage by following these 8 simple tips.

Petrol vs Diesel Cars In India Case study:

Since an aam aadmi would opt for the price range between 5 lakh and 7.5 lakh INR, let us assume 6 lakhs to be the cost of a car X. Considering Chennai city, a person would normally travel around 40 kilometres on an average (the to and from distance between Adyar and Tambaram, approximately) to his workplace and back.

(All the quantities detailed below are arrived after considering most of the cars in the price range, and they may not be exactly specific or accurate, as they do not point out to any particular brand or model)

Cost of petrol = INR 62 per litre

Cost of diesel = INR 53 per litre

Mileage of the petrol variant = 20 kmpl

Mileage of the diesel variant = 24 kmpl

This would mean that for a person travelling 40 kilometers daily, 2 liters of petrol or 1.7 liters of diesel are required.

Cost for petrol per day = 62 * 2 = INR 124

Cost of diesel per day = 53 * 1.7 = INR 90

This would mean that the daily savings by driving a diesel vehicle is around 35 bucks for the above mentioned case.

Now let us take into account that this person has to travel to his workplace for 25 days in a month, 35 * 25 = 875 bucks a month.

(Note that no extra travel is taken into account in this case)

If there are going to be some other travels as discussed at the beginning, let us take this as around 200 kilometers for a month. So if 35 bucks is the savings for 40 kilometers, it is 175 rupees for 200 kms.

So overall price saving due to diesel vehicle = 875 + 175 = INR 1,050 per month

For a year, this is 1,050 *12 = INR 12,600

Now consider the extra buck you have to pay when you are buying the diesel variant, say INR 80,000.

Payback period = 80000/12600 = 6.35 years

Petrol Vs Diesel Car Payback EMI in India
Petrol Vs Diesel Car Payback EMI

This would approximately mean 6 years and 4 months. If the car is purchased in loans or EMIs, the interest amounts need to be added up which would add a year more. So for a common man (who would buy the car only through installments or loans), it would around 7 ½ years to repay the initial costs, provided the above mentioned conditions are satisfied.

This would get reduced if the person travels around 60 to 70 kilometers per day in the diesel variant (the payback period would come down by almost two years). But there are other factors that are needed to be addressed in petrol and diesel cars .

The NVH (noise, vibration and harshness) is more in diesel vehicles than that of petrol generally. And hence the maintenance cost is high for the diesel car owners. So for long-term benefits (say 7 to 10 years), diesel vehicles can be deemed fit. But if you are looking at it in the point of view of around 3 to 5 years, petrol variant would sound a good choice.

2 thoughts on “Petrol Vs Diesel Cars in India 2016 – Which is better?”

  1. This is well articulated in much easier way that even a novice can understand the math worked out here. Definitely this would help for the first time car buyers!!

    Good job guys!!

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