Car prices set to go north in the New Year
The quantum of increase and its timing is being worked out by the top honchos of the car companies, reports Deepak Joshi.autos Updated: Dec 07, 2007 23:04 IST
Prospective car buyers take a quick decision on the models that you plan to buy. The prices of cars are expected to go up in the New Year.
To make buying more attractive, car companies are offering discounts in December.
Automakers usually face a slump in sales during December as customers prefer to buy vehicles in January and improve re-sale value at a later date.
The car industry has begun its exercise on price revision of its various models. The quantum of increase and its timing is being worked out by the top honchos of the car companies.
The car industry leader Maruti Suzuki India Ltd officials said that an increase in the prices of its various car models is inevitable due to rise in input costs such as lead and aluminium .
Though the quantum of increase in each model in the Maruti stable has not been decided, sources said the increase could be upto Rs. 12,000 at the top end of its vehicles.
Maruti production facilities will be shut down for maintenance activities during December 24-31 for bi-annual closure.
Car industry usually revises its prices twice a year—in January and July. As the car industry was facing a slowdown in July and had to absorb costs as well as offer discounts to customers, an increase in January is inevitable, sources stated.
General Motors India, the Indian arm of US automobile major, is also working on the details of raising the prices of its various models from the New Year. “ We are evaluating the quantum of increase for various models and the prices will revised from January 1,” a senior company official told the Hindustan Times.
Hyundai Motor India is also gearing to raise the prices of its cars though the company is tightlipped about its plans. “We will be increasing the prices of our cars, but the quantum and time of increase has not been finalized,” company officials stated.