Hike in prices could be last nail for diesel cars
TEAM HERALD
business@herald-goa.com
PANJIM: Automobile dealers in the state believe that the hike in price of diesel will not have any effect on the sale of vehicles. The general consensus is that it was too early to make an assessment to ascertain the reaction though some felt that with the sale of diesel run vehicles already going south this price rise would not help.
Paresh Joshi of Subrai Motors Pvt Ltd which represents Opel in the state said “For those who buy BMW’s, Mercedes Benz’s these minor increases really do not matter. When one looks at the segments where the middle class are interested in, perhaps here there will be a definite turn over a period of time. There has been a definite drop in this segment for diesel cars and over a period of time it will accelerate as the price of diesel increases every month. The value quotient that is perceived in a diesel vehicle was due to low cost of diesel, now that has been erased and diesel vehicles are generally more expensive by over a lakh which is substantial”.
The automobile industry in the state has been in a slump since the ban on mining and sales have dipped across segments. Sudesh Rattihalli, sales manager at Caculo Ford felt this increase in the cost of diesel would not make any difference. He said “Where are the sales numbers, I have approximately 120 people walking in my two outlets and the people who express an interest, but those who take it forward are minuscule. The consumer today has way too much choice so he goes around checking out various offers and negotiating discounts. Earlier it would take someone three days to decide but today it can be a very long time consuming affair.” Purchases during festivals he emphasized were very fast and people walked in and still purchased cars even during these tough times.
Asked how long this would continue he said no one had an answer though he hoped the situation would change sooner rather than later.
Goa is an A and B1 car segment market which includes brands like Maruti 800 and Alto. The difference in price between petrol and diesel variants does not exceed Rs 1lakh at the max and a minimum of Rs 80,000.
For Guarish Sakhardande, GM sales Sharayu Toyota Panjim had the final word when he said “We get over 220 walks in the outlets and it is tight market situation and it is tough converting now. I cannot give you an estimate of what will happen due to this increase perhaps in a month i could have an answer”.
For automobile manufacturers the coming months will be important as they will hope current trends change and diesel vehicles catch the fancy of the consumer.
