New Delhi, May 28: The impact of fuel price hike on overall consumption needs to be monitored to gauge its effect on the automobile demand, and it is premature to change the FY27 outlook of 10 per cent growth in passenger vehicles sales, Tata Motors Passenger Vehicles MD & CEO Shailesh Chandra said.
Rising fuel prices remain a key concern for the auto industry, with rates having increased four times in the last 10 days, making it difficult to assess the eventual impact on consumer sentiment and demand, he said during a media roundtable held on the sidelines of the launch of the Next Gen Tiago.
“Even fuel prices are evolving. Right now in the last 10 days, there are four increases. So, you do not know where this is going to end. That’s the first layer of what can impact and be a headwind to the industry,” said Chandra.
The effect, he said, could vary across segments, being ‘more pronounced’ in some.
He further cautioned that higher diesel prices could have a multiplier effect on inflation, which may influence consumer sentiment and spending patterns. (PTI)
