Diesel price hike trend worries automakers

Not a very good time for the Indian car market currently. The inflation impact forced the government to hike the diesel prices by 3 rupees along with the increase in rate of interest might lead to little bad impact on the car sales in India. The Indian car manufacturers are a bit tensed that this rise in diesel prices could actually have a bad effect on their long-standing investment on diesel cars and its technology can be jeopardized.

On 24th June, government of India hiked the diesel prices by Rs.3, which in turn reduced the gap between petrol and diesel to Rs. 22.50.  Currently petrol price in Delhi is around Rs. 63.37.  At present this hike in diesel prices will surely have a not so good impact on the car sales. Car manufacturers are now demanding a clear direction of the fuel policy. And the reason being that major car firms are at this time investing quite a lot in diesel technology on their cars. So if government keeps on hiking the diesel prices, this might obviously result in dropping of the sales.

As for Maruti India, which is the biggest car manufacturer in the country has about 70% of the diesel models in the domestic car market. And obviously, the demand for diesel cars is pretty high because of the sky rocketing petrol prices.  Last week diesel was surely Rs. 25 less than petrol, but after the increase in diesel prices by Rs. 3, this difference has been reduced to Rs. 22.50 only. But still, diesel is cheaper than petrol, so diesel cars sales increased to a great level.

The difference in the petrol prices and diesel prices has made the big daddies of the market, such as Hyundai, Maruti Suzuki India and General Motors to invest a whopping amount into the diesel engine manufacturing and related technology. That is the reason the car makers are demanding clarity on the fuel policy of the government.  Furthermore, it is known fact that diesel is about 20 to 305 more fuel efficient than petrol is. Diesel cars are economical in the long run. General Motors India is all geared up to render the diesel version of its popular hatchback Chevrolet Beat in July. This could rev up the sales of Chevrolet majorly.Some of the most popular diesel cars in India include, Skoda Laura, Volkswagen Vento, Chevrolet Cruze, and many more.