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Light Diesel Vehicle Market Segmented By various passenger cars, sports utility vehicles (SUVs), light weight trucks, pick-up trucks and minivans
With the rising fuel prices as a result of increasing demand and diminishing supply, there has been rise in the need to choose a cost effective fuel for vehicles. Despite its higher price than gasoline, diesel proves to be highly efficient and cost effective. In addition, diesel enables extraction of more energy as compared to same volume of gasoline.
Furthermore, diesel has a higher boiling point and is oilier than gasoline which improves engine efficiency. Thereby, diesel has become a preferred choice for both heavy-duty and light-duty vehicles across the world. Moreover, light diesel vehicles have reduced carbon emissions as compared to similar gasoline powered vehicles.
Light duty diesel vehicles are widely used across the world for personal and commercial purposes. Light duty vehicles include various passenger cars, sports utility vehicles (SUVs), light weight trucks, pick-up trucks and minivans. Such vehicles are widely accepted owing to factors such as low-end power, highway driving, reliability and improved towing and transportation of goods.
With more number of automobile manufacturers focusing on diesel vehicles, customers are able to choose from a wide range of vehicular design and specifications. This has further driven the popularity of light diesel vehicles across various customer segments.
One of the major factors driving the growth of light diesel vehicles is the increased fuel efficiency and cost effectiveness. Since automobiles have become an integral part of daily life in most countries, fuel expenditure has become a prime concern for population across the world.
With benefits such as better performance on highways and increased engine life, diesel has proved to be a viable alternative to gasoline. Another factor driving the growth of light diesel vehicle market is the reduced emission rates. With rising awareness and need for environmentally safer vehicles, increasing number of people are preferring diesel vehicles.
Moreover, recent technological advancements in diesel vehicles have further driven its popularity. Unlike the past diesel vehicle which were considered to be slow and loud, new generation diesel vehicles offer better performance, style and choice.
Despite its immense benefits, light diesel vehicles market faces a few challenges owing to its costs. Diesel vehicles, in general, cost moderately higher as compared to similar gasoline powered vehicles. Moreover, in case of short distance and in-city use, the fuel-efficiency of diesel vehicle isn’t relevant. Another factor posing a challenge to the growth of diesel vehicles market is the higher cost of diesel fuel itself.
With the rising popularity of diesel vehicles across the world, numerous vehicle manufacturers are focusing on designing and manufacturing of high-end diesel vehicles. Manufacturers are aiming to cater to the needs from various market segments including personal vehicles and commercial transportation.
In addition, key players aim to seek advantage in markets where diesel is available at a subsidized rate. For instance, despite its higher cost, diesel is sold at a cheaper rate in India as compared to gasoline.
Some of the key players in the light diesel vehicles market include BMW AG, Daimler AG, General Motors (GM) Company, Hyundai Motor Company, Mitsubishi Motors Corporation, Renault S.A., Suzuki Motor Corporation, Volkswagen AG, Chrysler Group LLC, Honda Motor Company, Ltd., Fiat S.p.A., Jaguar Land Rover Limited, Porsche AG, Subaru of America, Inc. and Toyota Motor Corporation. Other component manufacturers in the light diesel vehicle market include Continental AG, Denso Corporation, Ricardo Plc., Wabco Holdings, Inc., Robert Bosch GmbH and Federal-Mogul Corporation.