Hike in diesel price next month and dip in sales sees auto industry scaling down production and revising projections
The current economic scenario is depressing and causing untold damage to auto sales charts. Society of Indian Automobile Manufacturers (SIAM) have announced lower car sales…
The automobile industrial body is opposing this additional taxation on diesel and is calling for standard taxation on all vehicles. Pricing of fuel should be made market oriented and something needs to be done to decrease the gap between petrol and diesel prices. Projections for cars were lowered from 10% and 12% to 9% and 11% while for vans this projection went from 8% and 10% to as low as 3% and 5%.
Constant projections depend entirely on the Rupee: Dollar ratio, crude oil prices remaining constant and interest rates being stable all of which have been fluctuating drastically. It is hoped that there may be a revival by the time the festive season comes around later this year which will give some respite to vehicle manufacturers.
Apart from this, diesel price is going to be increased after the presidential elections. According to state run oil companies, they are selling diesel at a loss of Rs 10.33 per liter. Increasing the price of diesel has been on the radar for quite some time now, but the government has delayed pleas of oil companies for a long time now and it seems now that a hike is inevitable.
Presidential elections are slated for 7th August.