Mumbai: In the wake of the over Rs 7 increase in petrol prices by the government, CNBC-TV18 spoke to executives from leading auto companies for their reaction on the hike in petrol prices, its impact on the rupee and the economy as a whole.
Maruti Suzuki chairman RC Bhargava says that the price hike was not a shocker given the speed with which the rupee has depreciated. He also added that the hike will increase the difference between the demand for diesel and petrol cars.
Forecasting that close to 75 per cent-80 per cent of the auto market could turn diesel, he adds that the government had to decide to what extent it wanted the auto industry to become diesel-oriented.
Sunil Munjal,chairman, Hero Corp opines that the price increase was expected but the quantum came unseen and the hike was to include diesel also. He adds that it is only a matter of time before the price if diesel is increased too.
Pravin Shah, head - automotive, M&M reacts that the current increas in petrol prices was a further blow to consumers and the auto industry. He adds that M&M is not expected to be impacted right now as M&M has a diesel-driven market.
However, he explains that any increase will have an impact on overall cost of ownership to customers. He says that could not comment on the timing of petrol price hike and opines that irrespective of the level of affordability, the price hike is a dampener.
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