Car owners and prospective buyers, brace yourself for another round of hikes this April. Automobile companies are looking to increase prices by at least 2% to offset the cost of complying with the new on-board diagnostic regulations effective next month.
The regulations, announced in 2010, will be effective on all new cars from April 1 and require extra sensors to be fitted in cars, which will set off a warning in case of an emission malfunction. The moment the car starts polluting more either due to engine misfire, problems in the catalytic converter or when it exceeds the threshold level of emissions, a hazard light will be activated just like in cases of low fuel or engine oil leakages.
"We we are increasing car prices from April 1, 2013 by up to 2%. The details are still being worked out," said an executive at Honda Cars India.
While Hyundai also said it will increase prices, Maruti, Toyota and Ford are studying the cost implications.
Car sales have declined by 4.6% in the current fiscal year so far. Sales fell by 26% in February, the worst in 12 years.