Crude facts of rise in petrol and diesel price
The price of petrol that has been increasing in regular intervals since last year has finally reached a head.Â The last price hike of Rs.3.14…
Demand for diesel run vehicles has gone up to 70% as against an earlier 40%.Â This has led to increased waiting periods for diesel cars while stock s of petrol vehicles are laying idle. There is a general shift in production.Â Top auto companies are now concentrating all their energies on production of diesel engines due to this increase demand. Periodic increases in petrol rates coupled with rise in bank interest rates have made the auto industry sit up and take note of their sales targets for the coming year. Growth rate which was targeted at 30% last year has come down to a single digit during the current period.
Honda is the only auto company that is not offering diesel engines on their small vehicles. Indian car owners will just have to get used to these repeated hikes or switch to diesel vehicles which would be a better option. Of course, the market is tentative, and major carmakers arenâ€™t able to take a decision on full-fledged investment in diesel tech and power trains as price o diesel too may have to forego subsidy.