Mitsubishi to Hike Car Prices in India

author image Rishi
Friday 27 March 2009, 00:00 AM

All Mitsubishi cars in India will get expensive from April 1. The company plans to hike the prices of its models by up to 4-5 percent. “In the last year and a half, the yen has appreciated 40 per cent against the rupee. This, combined with the appreciation of the US dollar, has come as a double whammy for us,” Mr Y.V.S. Vijay Kumar, Executive Vice- President, Hindustan Motors.

The escalating yen has resulted in the imported kits to get expensive. Moreover, it is not possible to incorporate localized content in Mitsubishi models which means that there is a great forex outflow for both imported and assembled cars. Mitsubishi has a joint venture with Hindustan Motors in India and has an assembly unit in Chennai.
The company’s high end sports-utility vehicles (SUVs) Outlander and Pajero which are priced at Rs. 21-22 lakh will become costlier by Rs.1 lakh. The high-end Montero SUV, which is imported as a CBU and sports a price tag of Rs. 42 lakh, could see a steeper hike because duty levies are higher. Furthermore, Mitsubishi’s midsize sedans -Cedia with a price tag of Rs.10.29 lakh and Lancer with a price tag of Rs 8.20 lakh will become costlier by Rs.50,000 and Rs.40,000 respectively.

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