Oil price hike a damper for the auto sector
New Delhi:The fuel price hike, waiting to happen, has knocked the winds out of the automobile industry as any immediate recovery in its sales charts seems to have been kicked further into the future. The industry had pinned its hopes on October for a revival in its fortunes after sales failed to pick up --- thanks to sales tax rationalisation and the ongoing shraadh--- in August and September, traditionally volume robust months.

Says Jagdish Khattar, managing director, Maruti Udyog Ltd.,"Fuel price hike will impact both, demand as well as vendor input costs, substantially."

Agrees Hyundai’s BVR Subbu: "Demand, in fact, may not be hurt in the long-term but initially operating and manufacturing cost would be impacted."
"The industry has been waiting for the signals from the petroleum ministry. The biggest damper will be on sentiment," said Rajiv Dube, general manager (commercial), passenger car division, Telco.
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