Hike in petrol changes the demand of the consumer

With recent hike in petrol and related product there has been a deep impact over the automobile industry of the country. Rather it has encountered a major setback. Now the automobile industry is inclined more towards the manufacturing of diesel engine and that too with an advanced technology. The sale of diesel cars at present is 36% but now it is expected that the figure might touch 50 %.

Car manufacturing company like Honda that does not have any diesel cars faces the biggest problem. Other companies like General Motors, Volkswagen that were not having any diesel cars have now decided to set up diesel engine plants. Earlier they were producing only petrol cars. On the other hand when prices were discussed then it showed that the diesel driven Suzuki Swift Dzire, Mahindra Logan and Ford Fiesta have increased up to 10% to 15% in the second-hand market. On the contrary the prices for the petrol cars have lowered up to 20% especially in case of sedans such Honda Civic, Honda Sonata and SUV’s like Honda CRV and Mitsubishi Outlander.

The jumping of petrol prices and in such a short span of time has created an alarming situation for the Automobile Industry. There has been a sudden setback to the sale of the petrol vehicles. Not only this life of the common man has been shattered. The continuous rise in the prices of the petrol is creating an obstacle in the development of The Automobile industry in India.

This acceleration in the petrol price has put a lot of strain on the demand of automobile cars and has affected the general growth of the industry. This is the time when the Indian automotive market is evolving as one of the upcoming consumer market in the world. The top most automobile manufacturers around the world are keenly exploring the Indian market. The steep hike in petrol prices has dampened their spirit.

The soaring fuel prices have affected the sales of the automobile cars negatively. The demand for the luxury cars has receded. This frontal attack on the petrol prices has disappointed the enthusiastic consumer’s quest for buying shining new cars. There is a lesser flow of new consumers in the market. People, in general are hesitating to buy a new car due to the increased expenditure being incurred on petrol. The consumer is left with fewer options and ultimately will have to settle for a smaller car. The hike in petrol prices has greatly reduced the foot traffic in The Automobile showrooms.

The rate hike has a detrimental effect on the consumers who at times have to avail car loans to invest in a new car. High interest rates and hike in petrol prices are leading to major decline in the sale sector of the automobile industry. The domestic petrol car sales are considerably going down. The automobile manufacturers have to diversify now and completely focus on manufacturing diesel vehicles. As a result, lot of extra expenditure has to be done on research and in developing new technology for diesel and hybrid technology vehicles. . Not even the launching of new models has been able to attract the consumer, and boost the demand of the petrol cars.

Overall petrol car sales have crashed in previous months as consumers, harassed by high petrol costs have stayed out of showrooms.