Companies May Lower Tags, Offer More Discounts To Offset Impact The hike in petrol, diesel prices will fuel a slowdown in the auto industry in the short-term, feel car majors like Maruti, Hyundai and Honda. And, it may spell good news for consumers in terms of lower prices and greater discounts from car makers, who will try to offset the negative impact on the industry, which is already hit by higher interest rates and tighter retail financing. Market analysts said customers could expect more discounts with companies being forced to clear stocks and keep the momentum going. The impending monsoon season is anyway a lean period and the fuel price hike could not have come at a worst time. Already, the market is flooded with discounts, especially in the high-volume compact car segment. "This move would further dampen the demand for new cars, as the industry is under pressure because of the higher interest rates and the steep rise in input costs,' said Arvind Saxena, senior V-P at Hyundai India. A senior official at Maruti also said new purchases "would see a dip' due to the hike, though hoping that demand would pick up later. The impact would also be felt on some premium models, though the effect would not be much on cars priced above Rs 10 lakh,' said Jnaneswer Sen, V-P at Honda Siel Cars India. P Balendran, V-P at GM India, said the fuel hike had the potential to slow down industry's sales by as much as 2%. "And considering that this comes just when other negative pressures are already causing pressure, the effect can even be long-term,' he added. Two-wheeler makers, however, are less pessimistic and expect to be insulated. "The rise in petrol prices may impact the riding habits of people, and to some extent, the frequency of their usage of two-wheelers. However, it is unlikely to impact the overall demand for two-wheelers as the fundamental reasons for customers buying twowheelers