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Fuel Price Hikes Might Affect Car Sales
The Indian Govt has announced for the deregulation of petrol pricing, but the decision has not been taken on diesel pricing. Now, this might bring in some changes with the diesel and petrol car sales. The gap between the pricing of petrol and diesel is widening, therefore there might be a temporary demand for more diesel cars than petrol cars. In fact, in the last decade, the sales of diesel cars have increased double fold close to 25%.
According to the President, Pawan Goenka, SIAM, the auto makers in India have always welcomed the freeing of fuel prices. Although, this might increase the running cost, people have to live with it and said that there may not be any drastic changes in the consumer preferences for petrol or diesel vehicles. But if the gap between petrol and diesel prices is going to increase consistently, diesel car makers like Toyota will be preferred more, as for instance, Toyota provides diesel cars for its entire lineup except Corolla Altis.
According to GM, India's VP, Corporate Affairs, P Balendran, although there will a negative impact on sales in the short term, the situations will stabilise in the long term. Chevrolet (GM) has got luxury cars like Optra Magnum, Captiva and Cruze, but as of now they are petrol, but due to the demand in local market, the diesel variants of these cars will soon be launched by General Motors.
Many experts feel that the demand for diesel cars may go up in the coming days, but inspite of the hike in fuel price as well as car prices, the growth of Indian auto industry is like never before. So, people might buy lower variants of their favourite cars, or those who already own cars might be more conscious in spending money for fuel, otherwise, being more or less an essential commodity in everyday life, nothing will affect the sales of automobiles drastically, according to auto experts.
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