Future of diseal cars-effect of de-regulations

It is quite a known fact that the government is planning to deregulate the prices of fuel,after which the petroleum companies will have freedom to decide the prices of fuel. With this, government is planning to save as much as $25.6 billion dollars each year. This move will affect the growth of ever increasing auto sector adversely.

P Balendran , VP,GM India opines that high fuel prices will have a negative impact on sales and forecasts a drop of 5 to 10% in sales of diesel cars. Initially people used to prefer diesel cars as it was cheaper than petrol.After deregulation of prices the sale of diesel cars will definitely see downfall .The increasing prices will motivate the company to develop more fuel efficient vehicle which will bring new and improved techonoly to the industry.Increasing prices have not only motivated the development of new techonoly,but also given rise to alternative solutions . The R & D department is involved in developing more of hybrid cars.