Amid the fluctuations in the petrol price and the increment in the price of the diesel fuel, Mahindra and Mahindra expects that the shift from petrol cars to diesel cars will continue in the Indian auto market. Commenting on the matter, Mr. Pawan Goenka President Automotive & Farm Equipment Business, Mahindra Group and Chairman Ssangyong Motor Company stated that diesel cars will continue to sell steadily in India due to the numerous available options in the diesel car segment.
Talking about the much talked about ‘dieselisation’ of the Indian auto industry, Mr. Goenka stated that he doesn’t anticipate any effect of the diesel price hike on the Indian SUV segment. In the premium hatchback segment however, it is too early to comment on the situation, he added. There was a clear shift from petrol cars to diesel cars before the diesel price hike which can be attributed to the increase in diesel options in the hatchback segment and the higher fuel efficiency they offer in comparison to petrol cars.
Mr. Goenka stated that the current overall economic scenario is unfavorable for car sales and the consumer sentiments have been at a low due to inflation and frequent hikes in petrol price. Even new product launches along with heavy discount schemes have not been able to dispel this low sentiment, he added.
He stated that a decrease in the interest rates if announced by the government may be prove to be an instant short term support to the industry and would boost sales in the car market.