The car prices in India are witnessing yet another hike in nearly all car models from all car manufacturers. The car makers in India have hiked prices on nearly all their car models for the third time this year. Prices for nearly all metals have escalated in past few months and car makers are forced to hike prices for their car models due to rising input costs. Aluminium, nickel, copper, steel, plastic and even rubber prices have witnessed a steep rise which has added to the manufacturing costs.
Auto makers shall hike their car prices by Rs. 5000 on small cars to Rs. 12000 on luxury car models. Honda Siel Cars India has already hikes prices of its model City by Rs. 15,000 Civic by Rs. 20,000 and the new Accord by Rs. 30,000. Maruti has commented that it shall also hike the car prices after the market review. General Motors is also evaluating its options to hike car prices and its impact on Company’s market share.
According to Pawan Goenka, President (Automotive Sector), Mahindra and Mahindra, the rising input costs have hit the Company’s bottom line and it is not forced to pass on the burden to its customers. The input costs have gone up by more than 30 percent while the car makers are increasing their prices only by 3-4 percent.
