Diesel price cut fails to energise CV sales in November

Diesel is the lifeline of the commercial vehicle industry. Till November 4, 2021, the price of the fuel had hit a record high of Rs 106.62 a litre in Mumbai, Rs 102.59 in Chennai, Rs 101.56 in Kolkata and Rs 98.42 in Delhi. Fuel cost is estimated to be around 30-40% of the total operational cost of CVs and any reduction leads to improved profitability and a reduction in the CV mantra of TCO (Total Cost of Ownership).

So, when on November 4, the Central government slashed its excise duty on diesel by all of Rs 10 a litre