The multinational automaker of Japan, Toyota announced its opinion that it is strictly against the idea of decontrolling the diesel fuel prices and do not want government policies of controlling the same. Eventually this will be quite destructive for the Indian auto market.
The Managing Director of Toyota Kirloskar Motor, Hiroshi Nakagawa remarked, “This is not healthy. We expect the government to take some action.” He also mentioned that subsidizing the diesel fuel is impacting the demand for petrol run cars, which is sinking rapidly with every passing day.
The frequent hikes in petrol prices since last year has made the auto sales suffer significantly as the running cost of petrol cars is immense, making a common man suffer. And this is the reason why buying a petrol car has become all the more difficult plus people are shifting their preferences from petrol to diesel.
The running cost for a diesel car per kilometer is less than half in contrast to petrol vehicle, for example one needs to spend Rs. 5.22/km for running a petrol car instead of spending just half of that, Rs. 2.15/km for a diesel one.
So the wise thing for any automaker is to roll out more and more diesel versions in order to cater the rising demand. And Toyota is also considering a plan to enhance count of diesel cars in the country. Currently, Toyota imports diesel engines for its product range comprising of hatchback Liva, sedan Etios, MPV Innova and SUV Fortuner along with the planning of establishing a diesel engine plant in India.