Keeping vehicles economical and affordable in the long term due to rising fuel prices
Only cars with high fuel efficiency and low maintenance costs mostly fall into the 100,000 rupee category as fuel prices have risen 35% since July 2020, making driving even more impossible. It is expected to attract more domestic buyers, especially for low-priced cars. According to a report from HSBC Global Research.
According to the report, more than 70% of the cars in the country fall under the category of under 100,000 rupees and the overall situation suits a market leader like Maruti Suzuki India Limited (MSIL).
“In the last 15 months, fuel prices have increased by 35%, which has an impact on the operational costs of all vehicles. Our interactions with the channel encourage customers to become more aware of the latest fuel price hikes. It shows it happened. ”
Using the Martis Suzuki Swift petrol model as an example, the report finds that compact car fuel accounts for about 40% of today’s vehicle cost of living, up from 30% in mid-2020.
In such a scenario, cars with high fuel efficiency, low maintenance costs and costing less than 10 heads will become more popular among buyers.
He added that Maruti Suzuki continues to lead the market in terms of fuel economy and total cost of ownership, both absolute and competitive.
According to an HSBC report, MSIL has a 65% market share for vehicles in the under 100,000 rupee price range.