nother Rs.1.63 added to the accelerating petrol prices this September is definitely not good news but has not led to the usual outburst from the Indian auto industry. The auto market here is eagerly awaiting the festive season which brings about 24% rise in terms of sales for carmakers. In the past four months, from June to September, petrol prices have steeply risen by Rs.10.80 per litre and the latest Rs.1.63 hike is the seventh in a succession of painful hikes. The market was expecting a cut as the dwindling rupee managed to regain a little over the past few days.
The continuous petrol price hike from the past few years has lead to the growth of the diesel models. Sales of the diesel counterparts of models are leading and even forced Honda Motors to bring in diesel powered cars in India. Studies reveal that for the past 25 months, the auto industry is being driven by the diesel powered vehicles; however, in the month of August, the petrol powered vehicles beat the sales of their diesel counterparts. About 42% consumers opted for diesel vehicles in the first quarter of this fiscal; however, this figure was 54% in the same time period last year. The reason cited for the shift in sales was the continuous hike in diesel prices and as diesel vehicles are already priced more than the petrol variants, the overall expenditure is more.Text
: Charu Kishnani, Car Dekho
CarDekho.com - Grand i10 diesel in India.