Leading auto makers in India including Maruti Suzuki India Limited and Hyundai Motors India Limited have refused to hike prices of their models in near future. Automakers in India have already increased prices of nearly all their models thrice already in past six months. The first hike was due to rising input costs and the second price hike was due to duty roll back by Government of India on small cars. The third price hike had been due to implementation of the new emission norms. There had been rumours about a probable increase in car prices again due to escalating prices of steel and especially rubber.
Hyundai, Maruti and General Motors have stated that they will absorb the rise in costs and keep the prices steady in the Indian market. Auto market in India is currently experiencing a bull run and car manufacturers feel that any increase in prices may dampen the spirit of the market.
“Price hike is highly unlikely. Although input cost has gone up, there is competitive pressure. There has been some decreases, for example, in steel prices, but it is still very high compared to the last year,” says Maruti Suzuki chief general manager (marketing) Shashank Srivastava. On the other hand, HMIL Director Arvind Saxena expressed that he does not foresee any future price hike as there has been price hike thrice already.
