Latest Car News in India

Petrol price correction by Rs 2 per litre, review again on June 15

Those who own Maruti Alto K10 or any other petrol car and were lately utilizing every drop of petrol and were keeping their fingers crossed that they do not run out of petrol en route, can now happily take their car to the nearest petrol station for a tank full as petrol will cost them Rs 2 per litre less than before. It was though not great but a slight sigh of relief when the oil companies have decreased petrol price by Rs 2 per litre on Saturday which came into effect on Sunday. The decrease in petrol prices is expected to bring some sheen back on petrol car sales in India as sale of petrol cars has almost halted since the Rs 7.50 per litre hike recently. Reports are also coming in that the oil companies will be revising petrol prices on coming June 15 and thus car sales have a tight rope walk scene ahead.

As per the media reports, the oil companies were able to take this miraculous step only due to the fact that crude oil prices have dipped recently and raw crude costs them less. Notably, this is the first time in the last six months that petrol prices have seen a correction. Meanwhile, a further cut is expected from states who will be reducing the state VAT on petrol soon. In Delhi, the new petrol price as on Sunday June 3, is Rs 71.16 a litre. Meanwhile, the petrol prices have taken their toll on petrol car sales such as Hyundai Eon, Maruti Alto, Honda City and Honda Brio.

Overall, the market sentiments are low in the industry and following negative pressures from world economies, and the falling rupee as well as already high interest rate has all conspired to dampen and further dampen car sales. However, amidst this grim situation, it is diesel cars such as Mahindra Verito, Mahindra XUV 500 and Mahindra Xylo, besides small cars such as Chevrolet Beat Diesel reported somewhat decent sales and could protect the overall sales scenario in June.