Shifting towards Fuel Efficient Vehicles Manufacturing is the Key for Success of Indian Automobile Sector
Mr. Prahalathan Iyer
(Chief General Manager. Export-Import Bank of India)
The multipronged impact derived from the volatility in fuel prices affects the growth of the automotive industry all over the world including India. The oil price highly influences the demand for automobiles; not only because the fuel is the energy for the automobiles, but also because of its indirect impact on the various inputs that goes in the production of automobiles, such as polymers, steel and aluminum.Further, hike in oil prices have an impact on inflation, affecting the savings and disposable income of the consumers, thereby affecting the demand for automobiles.
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