Friday, September 14, 2012
By Manoj Kumawat
Diesel price hike to deter industry growth
The Indian car industry is in all probability will have a dark Diwali, not pitch dark though. The dwindling sales of Maruti Alto, Hyundai Eon due to petrol price rise could be seconded by the slide in sales of Maruti Swift and Maruti Swift Dzire besides other diesel cars. The diesel price hike seems to have spoiled all plans of the car makers and it could be possible that all will be coming into a damage control mode soon. Now that diesel price has been increased by Rs 5 per litre, the average Indian car buyer will have to rethink twice before going for a diesel car. Notably, the entire industry was banking on the sale of diesel cars and now that diesel price has increased, it will impact diesel car sales as well.
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The petrol car sales are already hit and now diesel price rise will impact diesel car sales. But industry experts believe that still diesel is cheaper than petrol and if the government spares the diesel cars from the hike in excise duty, the diesel car sales will save the industry from larger impact. It is believed that in such a scenario, the diesel cars that have high mileage will be selling in good numbers. These include, Chevrolet Beat Diesel that has a mileage of 25.44 kmpl, Tata Indica eCS, Renault Duster, Maruti Ertiga Diesel and other cars will be selling well while the fuel guzzlers will have to see a slowdown.
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Meanwhile, the opposition parties are demanding a roll back or some diesel price deduction and it seems that a reduction of around Rs 2 per litre is expected in a day or two. The truck unions are also opposing the diesel price rise, as it will lead to rise in transportation charges which will adversely impact the industry.