The second largest car manufacturer and the largest car exporter in India, Hyundai Motor India states that it may have to revise its annual sales growth expectation with the view that it may miss the sales growth target for the year 2012-13 due to high petrol price and high interest rates.
The company had set the target of 6-7 percent sales growth in 2012-13 at the beginning of the fiscal. However, Mr. Arvind Saxena Director In-charge (Marketing and Sales) Hyundai Motor India states that the possibility of achieving the target is beak primarily in light of the demand shift from petrol vehicles to diesel vehicles, diesel being cheaper by 43 percent in comparison to petrol. The diesel vehicles comprise 28 percent share in the company’s car portfolio in India.
Moreover, the proposal about an additional tax on diesel cars further boosted sales of diesel cars in the month of May 2012 following into June 2012. As a result, the petrol car sales have been hit significantly while diesel cars have long waiting periods for deliveries.