New Delhi: The automotive industry has increased the red flag above the surge in fuel prices and said that expensive gasoline and diesel will suppress the demand for cars and two-wheeled, while leading to strong inflation trends because the shipping costs rise.
Concerns came when the industry wrestled with uncertainty around the Coronavirus pandemic, and the possibility of the third wave.
Kenichi Ayukawa, Maruti Suzuki’s CEO, who is also President of the Siam body, said that at retail prices of gasoline remain more than Rs 100 in many parts of the country and diesel to RS 90, the sale of cars and two-wheeled cars will be beaten.
“Unfortunately, with the price of fuel rising, we will get a negative impact on our industry …
Historically, every time there is an increase in fuel prices, there has been a slowdown in demand.
We must be careful of this phenomenon, and monitor market trends, “Ayukawa said.
He said that the trend of increasing fuel costs can prevent people from using vehicles.
“We must carefully watch requests on the market because they automatically, (with) fuel prices rise, people will hesitate to use vehicles.
It is great attention to us.”