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Maruti, Honda cars India to get respite with petrol price slash soon

It is expected that with the fall in crude price globally, petrol price in India could see a decrease of Rs 2 per litre this week. With this, the heavy (or say mammoth) discounts on Maruti cars and Honda cars in India will start showing up some results. Recently in order to do minimize the effect of petrol price rise, Maruti has doled out heavy discounts on all its petrol and selected diesel cars. As per the so called Monsoon Offer, Maruti Alto, Maruti Eeco, Maruti 800 and Maruti SX4 apart from select models of Maruti cars were all offered on discounted prices and Maruti offered a discount of from Rs 12,000 to Rs 70,000. Meanwhile, Maruti also offered to give 36 litres of petrol on the purchase of its cars.

As part of the damage control mechanism, Honda also offered discounts on its car models in India. Meanwhile, car makers will have some respite from both the prevailing heat as well as increased petrol price leading to deserted showrooms. Notably, this decrease will be the second price cut this month after the unprecedented increase in petrol prices by Rs 7.50 per litre last month. Since the oil companies review fuel prices on a fortnightly basis they will be reviewing the petrol price too shortly. Meanwhile, the falling rupees could play a spoilsport in the gesture to bring some respite in petrol prices.

Amidst this meek scenario, specially when Maruti has voluntarily stopped production of petrol cars for some time and other petrol car makers such as Honda and Hyundai are reeling due to drastic decrease in petrol car sales, it is quite obvious that the government would take a step to save the industry from losing its sheen. In India, two car makers Maruti and Honda besides Hyundai are primarily petrol car makers and it is these three car giants that have suffered the most due to the petrol price hike. Petrol cars such as Honda Brio, Hyundai Eon and others that were sold in decent numbers recently have experienced a sudden decrease. Meanwhile the sales of diesel cars have taken a leap recently and thus the car sales overall growth in May remained positive.