The demand for diesel in India is growing rapidly and the rise in demand will keep up the pace. The rising demand will not get affected by raising the prices gradually, as the industrial sector in India has no alternative to diesel fuel, while the price hikes are too small to impact the demand. It is expected that the demand for diesel will grow further by around 8 percent this fiscal year in India. India is not the only country seeing huge demand for diesel, even globally the demand is seen increasing.
Diesel is also gaining huge surge in demand internationally. According to ExxonMobil report, diesel will become the number one choice over gasoline/petrol for transportation globally by the year 2020, which is not too far away. The report predicts that both diesel and petrol will remain the world’s most prominent fuel source by 2040, followed by hybrid vehicles that will manage about 40 percent of the world’s automobile fleet by 2040. Hybrid vehicles will become less expensive by 2025 and will gain tremendous popularity meanwhile.
The future doesn’t look bright for electric vehicles and plug-in hybrids as they are likely to remain under 5 percent of the market. The demand for petrol is expected to remain flat for the next few decades as developing nations will experience 80 percent increase in commercial transportation. The diesel powered heavy vehicle segment is likely to see an increase of 65 percent over the next 27 years. Thus automakers should consider investing big on diesel powerplants.