Come new year, and car prices in the country are set to go up a notch.
Automobile sales in November failed to show the festive spirit, and the companies are now exploring price hikes ranging from 1-3% beginning January 2011.
The trend was set by Hyundai Motors India, which on Monday announced a 1.5-2% price increment across models.
“The rising input costs have been robbing us leaving us with minimum margins. The prices of all Hyundai models are set to rise 1.5-2% in January,” said a spokesperson at Hyundai Motors India.
Maruti Suzuki India, the country’s largest auto maker, has not given out any specific guidance on the quantum of price hike. “We are still evaluating the quantum of price hike,” a company spokesperon said.
General Motors and Ford Motors are also understood to have decided to raise prices of their various models.
“There indeed is an upward pressure on input costs. However, as on date, we cannot provide you with specific guidance's on a price increase,” said a Tata Motors spokesperson.
“The price hike should compensate some of the input costs which have increased during the year and the year end is a good time for price hikes. The exact quantum of hike would be determined by demand and would differ from model to model,” said Yezdi Nagporewalla, national automotive head, KPMG India.
In November, Maruti Suzuki registered 28% jump in sales, while Hyundai India saw a 52% dip in its exports owing to maintenance shutdown of both its plants in Tamil Nadu. For Tata Motors, the bread-and-butter Indica’s sales fell 37%, while the Nano plummeted 85%.