Car makers likely to increase prices, owing to depreciation in rupee

Car makers likely to increase prices, owing to depreciation in rupee
author image CarTrade Editorial Team
Friday 21 June 2013, 12:15 PM

Car makers in the Indian auto market are planning to increase the prices of their models, owing to the depreciation in the value of rupee against strong US dollar. Sources close to the development process revealed that the key players of the market like Toyota and General Motors are looking for this move. Speaking on the same, the Deputy Managing Director and Chief Operating Officer (Marketing and Commercial) at Toyota Kirloskar Motors, Sandeep Singh was quoted as saying, “We will wait and watch for some time and will review our car prices at the end of the month. If this slide continues, we will be forced to increase the prices.”

Car makers likely to increase prices, owing to depreciation in rupee

He further added that fall in the value of rupee is adversely affecting the imports of Toyota Kirloskar Motors. Reportedly, the auto maker imports close to 50 per cent of components from other parts of the world. On the other hand, the Vice President of General Motors India, P Balendran said that the auto maker has recently increased the prices in its product portfolio in the first week of June and therefore, General Motors has no view of increasing them again. “But we will keep evaluating impact and review again,” he added.

On the same lines, Honda Cars India said in a statement that the auto maker has increased the prices of its several models, like Brio hatchback, City mid-size sedan and Accord premium sedan, with effect from April 1, 2013. The spokesperson of the auto maker further added, “We have also increased prices of Amaze and CRV with effect from June 1. Currently, we are trying to hold the prices and will wait and watch before taking any further hike.”

The country's largest auto maker, Maruti Suzuki India Limited has said that the auto maker is still undecided to take any move on increasing the prices. Hyundai India, India's largest passenger car exporter, said that the South Korean auto maker is presently not looking for any hike in the prices of its models, taking in concern the dwindling market condition. It must be noted that the value of rupee is continuously losing out its ground against the US dollar and has been at an all-time closing low of 58.77 on June 18, 2013.

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