Auto makers contemplate price hike effective from April

Thursday 27 March 2014, 10:51 AM by

Spiraling input and operational costs and continual depreciation of rupee has added to the woes of Indian automotive industry. Meager margins are making it difficult for auto makers to function and hence they are mulling to increase car prices. Moreover, the recent price reductions announced after the excise duty cuts too did not help elevating slumping sales.

Home grown auto makers, Mahindra, Tata and other car majors like Honda India and Renault India are likely to announce price hike effective April. India’s top two car makers, Maruti Suzuki India and Hyundai India too are considering price hike across its range. Ford India is also said to be thinking on the lines of increasing car prices.

Mahindra & Mahindra has confirmed that it will be raising prices of its cars from April. Commenting on the price hike, the Chief Executive, Automotive Division, Pravin Shah stated that the company has not reached a final decision yet but it is likely that Mahindra will increase car prices owing to the ever rising input and operational costs. . With the latest price hike being implemented next month by various auto makers, customers will definitely be disappointed.

Several auto makers had proclaimed price cuts across their line-up in India in order to pass on maximum benefit of excise duty reductions to their valuable customers, however contrary to the auto makers’ expectations, February witnessed drop in monthly sales by 6%. The passenger vehicle sales saw a fall of 6% between April 2013 and February 2014.

Car makers have also put on offer various lucrative schemes in wake of surging sales. The discounts and schemes on offing are confined to limited regions and for a restricted time period. Probably the auto makers are eyeing to end current fiscal on a good note and hence have come up with hefty cash discounts, exchange benefits and lucrative schemes.

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