Indian auto industry embraces diesel price deregulation
Maruti Suzuki India (MSI) Chairman RC Bhargava opines Indian government’s move to deregulate diesel prices does away with price distortion, and petrol and diesel prices will reveal less disparity. Resultantly, auto manufacturers can plan for future products and investments without limitations. Fuel prices should be dictated by market forces, and while petrol prices in India were deregulated earlier, that didn’t stump sales. In India, over recent years, difference between diesel and petrol prices has contracted.
Hyundai Motor India Ltd Senior Vice President (Sales & Marketing) Rakesh Srivastava reiterates that fuel price clarity is positive for Indian auto manufacturers in regards to planning new models and investment capacity. For a buyer, cost of ownership being a major deciding factor for new car purchase, fuel prices have always been of crucial importance. He adds, that price differential between petrol and diesel was forced because of subsidised diesel. Following deregulation of diesel prices, if the difference below Rs 10, contribution of diesel vehicle sales would be at about 30-40%.
N. Raja – Senior Vice President & Director (Sales & Marketing), Toyota Kirloskar Motor Pvt. Ltd welcomes Indian Government’s decision to deregulate diesel price, all the more is its timing, which coincides with the ongoing festive season. Indian auto industry has reported positive sales momentum in recent months, and the latest development will further boost positive industry sentiment.
Guillaume Sicard – President, Nissan India Operations views deregulation of diesel price as a bold decision by Government of India, in the best interest of Indian economy. He expects the move to bring about healthy competition in fuel retailing sector in the long run.
Renault India Country CEO and MD, Sumit Sawhney opines deregulation of diesel prices will be favourable to substantial reduction in government subsidy to reduce overall budget burden.
Honda Cars India, Senior Vice President, Marketing and Sales, Jnaneswar Sen opines now customers can decide car fuel type depending on user requirement. The move will help ease fiscal deficit. Announced over last weekend, Indian government deregulated diesel prices resulted in a price cut of Rs 3.37 a litre. Retail rates of the fuel will now reflect international movement in oil prices.