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Fuel deregulation makes car makers cautious
Published on 17 Jul. 2010 12:40 AM IST
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Car makers are anxiously watching the government’s move over its stated intention to deregulate diesel prices, as future model variants to be launched in India will depend entirely on the price at which the cheaper (than petrol) fuel is sold.
According to Business Standard, Sandeep Singh, deputy managing director (sales and marketing), Toyota Kirloskar, said, “Our decision on launching the diesel variant for the Etios or for other models will be based on the government’s move for the fuel.”
Y V S Vijay Kumar, executive vice president and business head of the Chennai car plant of Hindustan Motors, said, “Our diesel Outlander may not come to India very soon, as there is uncertainty over the price of the fuel.
Korea’s Hyundai Motor had reportedly concluded a recent feasibility study for having a diesel engine plant but is yet to decide on the proposed plant, whose study was conducted prior to the government’s deregulation plans.
Arvind Saxena, director, sales and marketing, Hyundai Motor India, said “Over foru to six years, the price gap between petrol and diesel has narrowed considerably. After the deregulation, this gap is expected to narrow even further and this will increase the demand for gasoline powered cars.”
Ford India is in a more comfortable situation. It has built a one-its-kind engine plant, which can manufacture both petrol and diesel engines on the same manufacturing line.

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