With fuel prices going up by 35 per cent over the past 15 months thereby impacting overall vehicle running costs, cars that have higher fuel efficiency and lower maintenance costs are expected to gain higher traction among buyers in India, specially in the sub-Rs 10 lakh category, according to a report.
Considering the fact that 70 per cent of the passenger vehicles market in India is still accounted for by vehicles costing less than Rs 10 lakh, the development augurs well for market leader Maruti Suzuki India Ltd (MSIL), said the report by HSBC Global Research.
“Over the past 15 months, fuel prices have gone up 35 per cent, impacting overall vehicle running costs…Our channel interactions suggest that customers are increasingly becoming considerate of the recent rise in fuel prices,” it said.
