Indian car market is performing well for 2011, but with the Indian government increasing petrol prices from last two years, Indian car users diverted their minds on to diesel cars. In India diesel prices are 40% cheaper than the petrol and diesel is 30% more fuel efficient than petrol, so Indian auto market is inclined more towards diesel car sales especially in 2011. Diesel auto cars are 70% more cheaper to run on the Indian roads which is more valuable for family car users. Many brands come with their new diesel model cars.

But opposing the latest trend, the Delhi government has increased the registration fees of diesel cars by 25% of the current fee. With this increase, the consumers are paying nearly 10,000 or more for the basic level diesel cars and 25,000-30,000 more for the luxurious diesel cars. In India, the number of car registrations for a day is nearly 1,200 to 1,400 vehicles, in this the registration of diesel cars account for 30 percent.

Owners pay 7 percent fee for the registration, but it will be now increased up to 8 percent for the basic level diesel cars and 12.5 percent for the luxury diesel cars, as against the previous fess of 10 percent.

This increase in registration fees have made even the diesel cars more expensive.