As fuel prices rise, cars with low running cost may gain more popularity: Report

A HSBC Global Research report states Maruti Suzuki vehicles will likely see more development and popularity amid rise fuel prices.It states that the fuel efficiency of Maruti vehicles has improved by 15-30 per cent in the past 10 years.
By : HT Auto Desk
| Updated on: 17 Oct 2021, 10:05 AM
The fuel efficiency of Maruti Swift and Swift Dzire was 18 km per litre (kmpl) nearly 10 years back and is 23.3 kmpl currently.
The fuel efficiency of Maruti Swift and Swift Dzire was 18 km per litre (kmpl) nearly 10 years back and is 23.3 kmpl currently.
The fuel efficiency of Maruti Swift and Swift Dzire was 18 km per litre (kmpl) nearly 10 years back and is 23.3 kmpl currently.
The fuel efficiency of Maruti Swift and Swift Dzire was 18 km per litre (kmpl) nearly 10 years back and is 23.3 kmpl currently.

As fuel prices in the country have gone up by 35 per cent over the past 15 months, it has majorly impacted the overall running costs of vehicles. In such a scenario, cars that have higher fuel efficiency and lower maintenance costs are likely to gain higher traction among buyers, specially the cars in the sub- 10 lakh segment, as per a report by HSBC Global Research.

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The research report further stated that since 70 per cent of passenger vehicles market in the country is still accounted for by vehicles costing less than 10 lakh, market leader Maruti Suzuki India Ltd (MSIL) will likely see more development and popularity.

(Also read | Maruti Suzuki teases new off-road car. Likely to be upcoming 2022 Jimny)

The report cited the example of Maruti Swift petrol, saying that for a compact passenger vehicle fuel now accounts for around 40 per cent of the vehicle's life-time cost as compared with 30 per cent during mid-2020. “Our channel interactions suggest that customers are increasingly becoming considerate of the recent rise in fuel prices," it stated.

Further elaborating on how Maruti Suzuki will fare well in the current fuel price crisis, the report stated that the carmaker continues to score well in this regard. "In our analysis, both in absolute terms and relative to competition, MSIL remains the market leader in fuel efficiency and total cost of ownership."

(Also read | Limited edition Suzuki Ignis in Red and White is sportier than existing model)

The automaker's competitive positioning will likely remain compelling as it has around 65 per cent market share in the less-than- 10 lakh price category, which will likely gain more traction in the current scenario. Further, Maruti vehicles' fuel efficiency has improved by 15-30 per cent in the past 10 years, the report stated. It cited examples of fuel efficiency of Maruti Swift and Swift Dzire, which was 18 km per litre (kmpl) nearly 10 years back and is 23.3 kmpl currently.

(with inputs from PTI)

 

First Published Date: 17 Oct 2021, 10:04 AM IST
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