Auto sector to benefit from decrease in price of petrol & diesel
Auto company will benefit from decrease in price of crude oil reflected in reduction in price of petrol and diesel. Petrol prices were cut by Rs.2 today. Crude oil is at 5 year low now. As the price of petrol has gone down, we ca expect that consumers in India will be positive to buy car in India.
One more reason why car company can do well in december is because some of the car company may increase the price of cars from 2 to 4% in jan 2015. We expect that the market sentiments are positive and it will help to auto sector as a whole.
Even in 2 wheeler, we can expect some positive news with petrol prices going down. Bajaj, Hero, TVS definitely will use this opportunity as lower petrol means high value for the consumer.
Some companies may be planning their media planning strategies so take advantage of this situation. We can expect some innovative adz from these companies.
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