Skoda missions for a price rise in India over depreciating rupee value
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Skoda Auto India, the wholly owned subsidiary of the Czech Republic based automaker, Skoda Auto and a division of the Volkswagen Group Sales India has made a major announcement in the form of hike in prices of its Indian portfolio owing to the depreciating value of the rupee.
The automaker is aiming to make the price rise effective in the next two to three weeks and it is estimated that the shoot up in the prices will be in the tune of 1 to 2 percent across various models. As per company sources, it is anticipated that the Fabia hatchback will tagged with an additional price of Rs. 10,000 to Rs. 15,000 while the Skoda’s most luxurious model, Superb may witness a whopping surge of a maximum of Rs. 30,000.
In the comparison to the dollar rate in the international market, the value of the rupee has seen a constant decline since the last year and has reached to an all time low value. A depreciation of 26.75 percent has been witnessed in the past year compelling automakers like Skoda to pronounce a price rise. Skoda Auto India follows comparatively lower level of localisation of its production operations, even on hatchback model, Fabia owing to which the cost of production has witnessed an exponential shoot up. The company is bound to pass on the burden of effect of weak rupee value on to the buyers.
The declining value of the Indian currency is also drastically influencing major automakers in the country’s auto market and after Skoda Auto various other multi-national car makers will be seen following this price rise trajectory.
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