Cars prices set to rise on input costs
With rupee hitting an all-time low on Tuesday, get ready to pay more for your dream car.autos Updated: Dec 13, 2011 20:43 IST
With rupee hitting an all-time low on Tuesday, get ready to pay more for your dream car.
Rising input costs coupled with a steep depreciation of the rupee in the last five months are forcing carmakers to raise prices even as consumer demand remains on the lower side.
Marketleader Maruti Suzuki, which raised prices of its in- demand diesel models by Rs 10,000 last month, said that it would raise prices again next month. This time, it will be across its product range.
“Rupee has depreciated by over 18% in the last 2 months and that is impacting us,” said Mayank Pareek, managing executive officer (marketing and sales), MSIL. “Next month there will be a price increase.”
Arch rival Hyundai Motor India also said it would raise prices in the range of 1.5% and 2% from January.
“We are in the process of working out the specific increase on the various models,” said Arvind Saxena, director (marketing and sales), Hyundai Motor India Ltd. “The pressure of rising inflation, higher fuel costs and sharp rupee depreciation has compelled us to look at a price increase on our models. All these factors have now made it very difficult for us to absorb the rising costs.”
Ford and General Motors have also announced price increase from January. Ford said it would raise prices by up to 3%, while GM eyes 1-2% hike.