New Delhi, June 21 -- Demand for scooters, premium motorcycles and entry-level cars could recover faster if fuel prices remain stable, according to a Goldman Sachs automobiles sector report, which analysed how Indian vehicle demand behaved during past fuel-price inflation cycles.

The report said its analysis of the last six fuel-price inflation episodes over the past decade showed that consumer demand tends to return more quickly in certain vehicle categories once fuel-price pressures ease.

"Based on volume growth and local petrol/diesel price data from the last six fuel price inflation episodes (5% to 10% inflation periods) over the past 10 years, we note that once fuel price hikes subsided, demand came back fastest in Scooters, Premiu...