New Delhi, India (CNN) -- India is motorizing fast.
More than 2.5 million cars alone were sold in the 2010-11 fiscal year and the figure is expected to grow up to 18% in 2011-12, data shows.
A cheering statistics for car makers, but a cause of worry for environmentalists.
With gasoline prices shooting up in the country, an increasing number of Indians are now attracted toward vehicles powered by cheaper, subsidized diesel, industry leaders and campaigners say.
Anumita Roychowdhury, an executive director at New Delhi's Centre for Science and Environment, warns the trend poses serious health risks because diesel available in India does not match international benchmarks.
India reduced sulphur contents in diesel drastically to 50 parts per million (ppm) when it introduced its new emission norms in 13 cities last year. The rest of the country, however, still uses 350 ppm diesel.
A clean diesel technology, Roychowdhury explains, rather comprises 10-15 ppm fuel burned with advanced traps fitted into cars.
"New engines may have eliminated visible black smoke that we see from old diesel vehicles, but the tiny and toxic particles are still high as these cars are not equipped with the advanced particulate traps that are now mandatory in the U.S. and Europe to control these invisible and extremely harmful particles, which go very deep into the lungs," she says.
Automakers agree availability of diesel matching global standards is an issue in India, but they defend their technology stoutly.
"As far as technology is concerned, we are using advanced technology in India. We are at par with Europe. Even in Europe the diesel-engine sale is much higher than gasoline. And Europe is highly concerned about environment. So are we today. So, as far as environment is concerned, diesel technology is quite advanced and (a) much cleaner technology," said Sandeep Singh, deputy managing director of Toyota's India unit.
He, however, acknowledged that differences in fuel prices were encouraging sales of higher-priced diesel cars.
"I believe the ratio of diesel-driven vehicles has increased in the last one year (to) at least by 10 percent," Singh said.
"Today, the gap between diesel and petrol is high. I don't think the customer should look at only this gap because this gap may narrow down tomorrow. But today, certainly this gap is driving customers to buy a diesel-driven vehicle," he added.
At a car dealership in a New Delhi suburb, businessman Deepak Makhija took the delivery of his diesel-powered multi-purpose vehicle, citing fuel pricing.
"(P)etrol prices are going up and up. It's almost (that) petrol prices are double than the diesel prices. So... 100% profit is there if we go with a diesel car," said Makhija, whose daily travel involves up to 80 km (50 miles).
India decided to lift its decades-old price controls on both gasoline and diesel last year. While gas costs have since been market-linked, the move to free up diesel has been slow and gradual.
An increase in prices of diesel, which is widely used in freight transport, by farmers and in power generators, is likely to have a spill-over effect on India's stubbornly high inflation, a sensitive issue with the country's large impoverished population.
But environmentalists caution health costs are high and that it's high time India brought price parity between gas and diesel.
"Our message is simple -- first sort out your fuel pricing and technology roadmap and then produce diesel cars. But don't have the cake and eat it too," Roychowdhury said.
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