The Indian car industry is likely to witness yet another price hike as leading auto makers in the country are expected to increase car prices by 2 - 3% in March 2011. The price hike of 2 to 3 percent will directly translate into a price increase of up to Rs 10,000 for B segment cars like Maruti Swift, Hyundai i20 and Honda Jazz. While on the other hand, premium car models such as Honda Accord, Toyota Camry and Skoda Superb would be registering a price increase of up to Rs 25,000.
In a recent statement, Mr. S Maitra, managing executive officer (supply chain) Maruti Suzuki, said, “There is immense pressure to increase prices as key commodities like steel and rubber have touched all-time high in recent months. While the negotiations for our new long-term supply contract are underway, suppliers are quoting much higher prices."
It is to be mentioned here that car makers in the country had hiked the price of their car up to 2 to 4 % in the month of January this year, blaming rising cost of input materials. The car makers like Hyundai and Toyota are also evaluating their price position and may take a decision in this regard soon.
