Automakers see brighter side in move to hike diesel prices
Despite the possibility of a temporary hit on sales due to the proposed diesel price hike, Toyota Kirloskar Motor (TKM) Vice Chairman and Whole Time Director Shekar Viswanathan said: "It is always better to have a realistic and market related pricing, and the earlier it is the better."
He further said instead of sudden increase of prices, it should be done in a gradual manner. When asked if sales of TKM, whose major contribution comes from diesel driven vehicles, will be impacted, he said:
"We want the consumers to have the choice. If there is more demand for petrol vehicles, then we will be producing more petrol vehicles."
Society of Indian Automobile Manufacturers has already stated that it would welcome any move to reduce the gap between petrol and diesel prices and also to deregulate diesel pricing.
Commenting on the government's move, Mahindra & Mahindra Chairman Anand Mahindra tweeted: "If the minister's statement regarding oil companies' flexibility to tweak diesel prices is the first step to price decontrol, then it's a bold and overdue step."
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