India to Witness Another Hike in Car Prices

Wednesday 25 June 2008, 00:00 AM by Satish

Auto makers in India are contemplating over price hikes on their cars in India. Rising inflation and hike in steel prices have left little choice for the car makers in India to curb the car prices in the country. Maruti Suzuki, Hyundai, Tata Motors and Honda Siel had increased their car prices barely four weeks back. They had increased their car prices from Rs. 6000 to Rs. 30000 across all their models in India. Now, India may again witness a round of price hike on car models available in the country.

Steel constitutes nearly 40 percent of the car price has witnessed nearly a hike of nearly 20 percent or more i.e. Rs. 3000 per metric tonne in last one month. Government has also been unable to keep a check on the steel prices including other ingredients of car manufacturing like copper, aluminium and rubber. There has been a considerable rise in the rubber prices as well which has further led to the increased manufacturing costs.

A senior executive from Mahindra and Mahindra has confirmed that the company is already working on the pricing of its automobiles in the country. Hyundai spokesperson states that the company has also not ruled out the possibility of price hike. However, there are no confirmed prices or date of price hikes from any company as yet.

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