With fuel prices going up by 35% over the past 15 months thereby impacting overall vehicle running costs, cars that have higher fuel efficiency and lower maintenance costs are expected to gain higher traction among buyers in India, especially in the sub-₹10 lakh category, according to a report.
Considering the fact that 70% of the passenger-vehicle market in India is still accounted for by vehicles costing less than ₹10 lakh, the development augurs well for market leader Maruti Suzuki India Limited (MSIL), said the report by HSBC Global Research.
MSIL has about 65% market share in the less-than-₹10 lakh price category, it added.
