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Study: Fuel Price is Main Driver of India Car Sales
Fuel prices are the biggest factor in determining sales of new cars and commercial trucks in India, according to the country’s central bank.
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Fuel prices are the biggest factor in determining sales of new cars and commercial trucks in India, according to the country’s central bank.
The Reserve Bank of India analysis says last year’s tougher insurance rules also dampened growth in car sales. The bank adds that the availability and cost of credit appear to have no lasting impact on demand.
The study analyzed the Indian car maker between 2015 and 2018. It concludes that an increase of 100 basis points in fuel prices results in a 72-point decline in car sales growth two months later.
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