New Delhi: Car makers are worried that the hike in fuel prices would further drag down sales in an industry that’s slowing down from the impact of higher lending rates and lack of retail credit, but say that sales of more fuel efficient cars might pick up.
“Initially, car sales might see a dip. But eventually, we expect it to be back on track as customers will look for more fuel-efficient options,” said a spokesman for Maruti Suzuki India Ltd, the country’s largest car maker.
“The current price hike has further aggravated the woes of Indian consumers already reeling under abnormally high inflation,” said Arvind Saxena, senior vice-president- marketing & sales at the local unit of Hyundai Motor Co. “This is a phase where I see the shift will be towards compact cars and the demand for more fuel efficient cars and alternate fuels will increase.” The government on Wednesday increased the prices of petrol and diesel by 10%, the largest raise in recent times. The automotive sector, which contributes to 5% of the nation’s gross domestic product and 17% of indirect taxes, is usually an accurate indicator of economic sentiment.
- Ravi Krishnan and Reuters
Allen Pereira to head Bank of Maharashtra
Mumbai: Bank of Maharashtra has said Allen Pereira has been appointed its chairman and managing director, succeeding M.D. Mallya, who is now chairman of Bank of Baroda.
Pereira, who was executive director of Oriental Bank of Commerce since March 2006, started his career with Syndicate Bank as a specialist officer in personnel department in 1973.
- Anup Roy