The recent hike in the price of diesel will not lead to any decline in charm of diesel cars for buyers as the cost of running a diesel car vis-a-vis a petrol car is still considerably lower.

According to an analysis of the costs of running diesel and petrol cars revealed that the cost of running a petrol car is Rs 4.89 per kilometer, much higher than that of a diesel car which is Rs 2.47 per kilometer.

Therefore, analysts as well as auto market players are sure that the hold of diesel on the passenger cars will continue as it is.

President Pawan Goenka, of Mahindra & Mahindra's automotive division, admitted that there might be some shift for petrol cars but it would be only in the small car category.

Speaking on the topic, Goenka said, "The overall impact won't be much. There may be some shift for petrol cars only in the small car category, but this not for big cars, utility vehicles and SUVs."

Last week, the union government raised the price of diesel by Rs. 5 per litre, triggering speculation that it could reduce charm of diesel cars for buyers.

Share of diesel cars in the passenger vehicle segment has increased drastically over the past few years, especially due to the widening gap between the prices of petrol and diesel. The gap between the prices of the two fuels widened after the government de-regulated petrol but maintained the subsidy on diesel.