You are on page 1of 8

COST EFFECTIVENESS OF VEHICLE OPERATIONS MANAGEMENT

PRESENTED BYROLL NO 83 85 86 92 101 117 NAME Romil Ved Prasad Dalvi Jay Shah Darshit Ajmera Shiwang Ghatge Dhrumin Patel

80% 70% 60% 50% 40% 31% 30% 20% 10% 0% FY 2011 FY 2012 69% 53% Petrol 47% Petrol Diesel Petrol Diesel Diesel Economics Work out . The drop. The share of petrol cars has seen a gradual increase month-onmonth to 54% by October of 2012. The share of petrol cars. The price gap between petrol and diesel fuel which was around Rs 9. with petrol prices getting deregulated and diesel prices still controlled. which constituted 81% of the overall market in FY08. This resulted in a major shift in demand for diesel cars. which stood at 75% in FY10.Market Share: The share of petrol cars. It went further down to 47% in July 2012 before it gradually recovered. before closing out the month of November at 53%. has been dramatic in the past couple of years. has been slipping consistently year-on-year due to the introduction of quality diesel hatchbacks and sedans in the market.80 in May 2010 widened to Rs 25 in a short span of a year. slipped to 69% in FY11 and further to 58% at the end of FY12. however.

20. On the other hand the money you spent on the Petrol will be around INR 2.00.400 At the end of the 4th year the money you spent for the Diesel will be around INR 1. So the BEP will be attained at the end of 4 years. Which will be recovered after the 4 years in terms of the fuel costs.Mileage of XYZ Diesel = 20 kmpl Mileage of XYZ Petrol = 15 kmpl Monthly driving distance = 1000 km XYZ Petrol Price Mileage Monthly Consumption Monthly cost for fuel (INR) Fuel Cost after 1 year Fuel Cost After 2 years Fuel Cost After 3 years Fuel Cost After 4 years INR 6. .00.900 48 x 5025 =2.000 – 1.80.35.000 20 kmpl 50 liters 50 x 56 = 2800 12 x 2800 = 33.300 24 x 5025 = 1.34.200 36 x 2800 = 1.06.200 XYZ Diesel INR 7.41.000.000 This profit on Diesel model is nearly equal to the extra cost you paid at the time of buying it.. Profit on Diesel model = 2.41.000 = 1.000 15 kmpl 67 liters 67 x 75 = 5025 12 x 5025 = 60.e.00.000.600 24 x 2800 = 67.000. i. Price (XYZ Diesel) – Price (XYZ Petrol) = INR 1.800 48 x 2800 = 1.600 36 x 5025 = 1.00.41.35.

Price (XYZ Diesel) – Price (XYZ Petrol) = INR 1.000 XYZ Diesel INR 7.80.00..70. i. On the other hand the money you spent on the Petrol will be around INR 2.000.00.51. Profit on Diesel model = 2.e.200 At the end of the 3rd year the money you spent for the Diesel will be around INR 1. Which will be recovered after the 4 years in terms of the fuel costs.00.000 = 1.000 24 x 7500 = 1.000 This profit on Diesel model is nearly equal to the extra cost you paid at the time of buying it.800 36 x 4200 = 1.000.000 20 kmpl 75 liters 75 x 56 = 4200 12 x 4200 = 50.00.000 – 1.400 24 x 4200 = 1. .000 36 x 7500 = 2.000 15 kmpl 100 liters 100 x 75 = 7500 12 x 7500 = 90.51.Mileage of XYZ Diesel = 20 kmpl Mileage of XYZ Petrol = 15 kmpl Monthly driving distance = 1500 km XYZ Petrol Price Mileage Monthly Consumption Monthly cost for fuel (INR) Fuel Cost after 1 year Fuel Cost After 2 years Fuel Cost After 3 years INR 6.51.70.19. So the BEP will be attained at the end of 3 years.70.000.

34.600 24 x 10050 = 2. i.200 24 x 5600 = 1.61.600 At the end of the 2nd year the money you spent for the Diesel will be around INR 1.000.000 – 1.400 36 x 5600 = 2.00.34.000 15 kmpl 134 liters 134 x 75 = 10050 12 x 10050 = 1.000.41.800 XYZ Diesel INR 7.000 20 kmpl 100 liters 100 x 56 = 5600 12 x 5600 = 67.. .Mileage of XYZ Diesel = 20 kmpl Mileage of XYZ Petrol = 15 kmpl Monthly driving distance = 2000 km XYZ Petrol Price Mileage Monthly Consumption Monthly cost for fuel (INR) Fuel Cost after 1 year Fuel Cost After 2 years Fuel Cost After 3 years INR 6.01.000.07.000 This profit on Diesel model is nearly equal to the extra cost you paid at the time of buying it. So the BEP will be attained at the end of 2 years.00. Which will be recovered after the 4 years in terms of the fuel costs.00. Price (XYZ Diesel) – Price (XYZ Petrol) = INR 1.200 36 x 10050 = 3.41.20.41. On the other hand the money you spent on the Petrol will be around INR 2. Profit on Diesel model = 2.e.34.000 = 1.

smoother and quieter than their diesel counterparts. the visible give away is the rev counter. Diesel engines also offer increased torque (pulling power) from low revs. However. however.Factors to be considered while selecting a Petrol/Diesel Car Petrol and diesel fuel prices Petrol and Diesel prices need to be taken into consideration before choosing the variant. resulting in correspondingly lower car tax liability. diesel engines use particulate filters. They’re currently in high demand. Often. insurance and servicing costs Diesel engines are inherently more efficient than their petrol opposites. Car tax and insurance should be factored into your estimations. the 2012 Which? Car Survey shows. which can get clogged (especially if only used for short journeys). diesel cars have become more refined.  . that dieselpowered cars are still slightly less reliable than petrol ones. so the CO2 levels are usually lower. as carmakers have developed ways to mask the trademark signs . Car tax. is negligible. it is potentially more expensive to repair a diesel if anything serious goes wrong. However. on the whole. Petrol vs diesel – other factors to consider  Conventional wisdom says that petrol models tend to be faster. which is especially useful when towing or overtaking. higher the difference shorter is the BEP period between both he variants. In particular. which will have a much lower rev limit than one for a Petrol car. but the difference will be small compared the likely fuel savings. And while routine maintenance costs are similar for petrol and diesel. thanks to people looking for cars with better fuel economy and lower car tax rates. and the cost of replacement can stretch into thousands of pounds. The difference in servicing costs. Residual values of petrol and diesel cars Diesel cars generally retain their value better than petrol versions. The price of insurance can vary by model and can favour either option. so check before you buy.to the point where you may even struggle to tell the difference in some upmarket models.

 Purchasing Diesel Car was attractive when there was a huge price Gulf between fuel prices. . Analyzing the trend  Gap is bridging between petrol and Diesel Fuel Prices.  With the nearing of difference between prices of both the fuels the market is expected to be more balanced.  Chevrolet’s Beat had a Diesel Petrol Ratio of 85:15 Last year.  People Change car now every 4-5 Years.  Any Customer Looks for Payback Period of about 4 Years.  30 % increase in 4 months in Mahindra Petrol Cars. which is change to 70:30 this year. Diesel cars are more efficient.  Tata Motors Diesel sales fell. potentially causing less damage to the environment (especially if fitted with a diesel particulate filter to trap the nasty soot-like emissions many associate with diesels). and so use less fuel for a given mileage.

COST EFFECTIVENESS OF VEHICLE OPERATIONS MANAGEMENT PRESENTED BYROLL NO 85 101 117 86 92 83 NAME Prasad Dalvi Shiwang Ghatge Dhrumin Patel Jay Shah Darshit Ajmera Romil Ved .