Diesel Price Rise Indicating Trouble for Car Industry
The Automobile Industry all around the world, be it India or Europe, all are facing instability due to falling value of the currency or like in our case, the instable pricing of fuels. The sales for all segments in India are diminishing anyway and now to further add to the depression was the announcements and the news that has been in the market about additional taxation on diesel cars. Following this, more recently is the news that the diesel prices are going to increase post the presidential elections which are due on 7th of August. This news has hard hit the auto manufacturers but as per various sources, since the oil companies had been selling diesel at a loss of Rs. 10 approximately, this was sure to happen.
SIAM (Society of Indian Automobile Manufacturers) announced the lower car sales growth in this fiscal as a result of which the manufacturers are cutting down their productions. First the demand for petrol variants was falling due to price hike followed by unsure and unstable diesel taxation policies and now with this current development, the diesel market will be hit hard as well. This instability might cost big to many manufacturers and auto related industries. With so many new and improved vehicles coming in, the enthusiasm of the industry is up but these economic issues are killing the excitement to lesser than half of what it should be. What happens here on, time is the best judge.