In 2005, the cost of operating a car in India has shot up in excess of the cost-push exerted by inflationary pressure, thanks to two rounds of price hikes in petrol and diesel during the year.
While inflation in 2005 has, on an average, remained in the range of 4-5 per cent thus far, the cost of operating new vehicles has risen 11 per cent and 15 per cent for petrol and diesel vehicles, respectively, from 2004, according to a study conducted recently by JD Power Asia Pacific.
The study, now in its ninth year, is conducted to primarily examine the satisfaction level of new vehicles buyers with the authorised, ownership service experience of 12-18 months. Over 4,200 owners of 33 different vehicle models participated in the 2005 study, fielded during June-August 2005.
The overall cost of operation is an aggregation of three cost components - fuel, repair and maintenance, and tyre costs.
According to the study, diesel vehicle owners continue to report lower overall operating cost per kilometre (km) than their petrol vehicle counterparts, largely due to significantly lower fuel costs. Yet, diesel vehicle owners report a 44 per cent higher repair and maintenance cost - on a per-km basis - compared to petrol vehicle owners.
Though price increase in diesel and petrol is common to all, the efficiency level (or the lack of it) of individual model puts the range of rise in cost of operation, between models, at as wide as 1.24 per cent to 22.51 per cent.
According to the study, Tata's station wagon - the Indigo Marina - is among the vehicles hit most by the price hike in diesel. The cost of owning an Indigo Marina has moved up by 22.51 per cent between 2004 and 2005.
"It is worth noting that the Indigo Marina still has, in absolute terms, the lowest operating cost among the popular vehicles in India. Given its small base (in 2004), the percentage rise in 2005 seems steeper compared to other models," said Mohit Arora, director - India, JD Power Asia Pacific.
Interestingly, the fuel economy and the tyre cost of the Indigo Marina has remained unchanged over the last one year. But an increase in the cost of repair and maintenance has led to a surge in total cost of operating the model.
In the 2005 survey, the study has not included Suzuki's Swift and Toyota Innova, as these two models were launched only recently.
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