India fuel spike could weaken car sales, says Shailesh Chandra
Fuel prices in India have shot up four times in just 10 days, now topping ₹100 per liter thanks to tensions in West Asia.
Tata Motors Passenger Vehicles MD & CEO Shailesh Chandra says this spike, especially in diesel, could push up transport costs and inflation, making people think twice before buying new cars.
As he puts it, this may weaken consumer sentiment and impact car sales as automobiles are considered high-ticket purchases.
Tata Motors EV bookings 2-2.5x
On the bright side, more people are looking at electric vehicles to dodge those high running costs.
Tata Motors has seen electric vehicle bookings jump two to 2.5 times lately and plans to ramp up electric vehicle production by 50% over the next few months.
Its flexible factories can quickly switch between gasoline and electric models, helping them keep up with the growing demand for cleaner rides.