Auto industry sees further demand slump on fuel price hike

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Carmakers in the country are expecting sales to slow down further following the biggest ever hike of Rs 5 a litre in petrol prices last week, at a time when the market is already reeling under pressure from high interest rates on auto loans.

Industry players also feel that till diesel prices are de-regulated and a significant difference of prices between the two fuels exists, demand for diesel-driven cars will rise.

"We have already seen reduction in passenger car growth last month due to higher interest rates and hike in commodity prices. With petrol prices going up, demand will further be impacted, mainly on short-term," Society of Indian Automobile Manufacturers (SIAM) Director General Vishnu Mathur told PTI.

Car sales in India posted the slowest growth rate in 22 months in April this year at 13.


[Source:PTI]

Comments

  1. ArcadiaJuly 2, 2011 at 7:01 PM

    Increasing fuel price make car owners to think just to walk and used bike rather use fuel that is to expensive..

    New Car Loan Rates

    ReplyDelete

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