Wednesday, May 01, 2013
By Anil Jangid
Petrol prices drop by Rs 3, a positive sign for petrol cars in India
The current drop in petrol prices is what can be called as unbelievable but true. It is truly a sign of recovery for the Indian auto industry and this should have positive impact on petrol car sales. Also, the sales of the petrol models of best selling cars such as Maruti Swift, Maruti Swift Dzire, Maruti Ertiga etc will also increase. It is expected that with the narrowing divide between petrol and diesel prices will be bringing back the lost sheen in the auto industry as diesel cars are high priced as compared by around Rs 1 lakh as compared to the petrol models. Now that diesel and petrol price difference is only Rs 14.46 per litre (in New Delhi) after the latest decrease in petrol price by Rs 3 a litre from May 1, soon very soon there will be transformation in the industry.
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Government’s endeavor to bridge this gap by increasing diesel prices by 50 paisa per month and bringing down petrol prices seem to work the best for Indian auto industry and specially for those car makers who have majority of petrol car offering. Maruti India, Honda and Hyundai India are some of them. But some experts believe that the slash in petrol prices could be momentary and the price could take an uptrend soon and if that happens and diesel price too take a gradual and steady rise then there could be a major setback to the industry.
Meanwhile, car makers in the country have already started highlighting the petrol models of their cars in India. Some of the most notable promotions include that of Volkswagen Polo TSI, Honda Amaze and Maruti Swift Dzire Regal. It is believed that the wave of decrease in the price of petrol will revive the small car sales in the country and this will have positive results for Maruti Alto 800, Hyundai Eon and other small cars.
