Talks about the myth of fule hike in India is not affecting to Vehicle sales

1. IMPACT OF fuel price on Auto
sector.
Avinash M.

2. The great Myth
• Over the years the fuel prices in India are
controlled.
• Myth – Auto sector is unaffected by fuel prices
in long run.

3. Bust the myth
• Indian Auto buying decision is based on
Mileage.
• Auto consumers are more cost lead while
deciding the vehicle.( More SUV on Diesel )
• Operating cost and Maintenance cost plays a
big role on what to buy and when to buy.
• Cost of vehicle is secondary to above cost in
decision.

4. • An average Indian consumer would like to
spend a more for Diesel vehicle .
• The Market sentiments are scattered by even
a slight variation in fuel prices.

5. Incidences

6. Frequent increase results..
• Drop is vehicle sales for a quarter.
• Low showroom visits by potential buyers.
• More schemes – drain in profit of vehicle
manufacturer.
• More scheme from dealer – affect their
sustainability.
• Effect is visible in service for cost pressure.

7. • Thank You