The Indian car enthusiasts are going to witness their favourite vehicles getting dearer by 1-3 per cent, as all major auto makers have decided or have revealed intentions to hike retail values of their offered product range from January 2013. The prime reasons behind this decision is reported to be the rising input costs along with repeated fluctuations in currency value. Further, recent slowdown has impacted such moves as well, when the entire global automobile industry witnessed slackening sales figures and uncertain future possibilities.
Next year onwards, big auto firms like Maruti Suzuki, Toyota Kirloskar Motor, General Motors, Hyundai and BMW have affirmed that there is going to be a raise in prices of their portfolio marketed on Indian turf. The price hikes vary in the range between 1 and 3 per cent, besides are being claimed by the car makers as a necessity.
For instance, Maruti Suzuki India Limited (MSIL), the country's favourite passenger vehicle maker, has announced to hike prices of its entire range by up to Rs. 20,000 from January 2013. MSIL's stiffest rival and second largest passenger car maker in the country, Hyundai Motor India Limited (HMIL) has also revealed similar intentions and an announcement concerning the same is expected any time now.
Toyota Kirloskar Motor (TKM), the joint venture between Toyota Motor Corp. and Kirloskar Group, has declared to raise retail costs of their Indian range range by 1.5 per cent, with effect from January 2013. On similar lines, General Motor India Private Limited, the country's fifth largest passenger car maker, has announced to hike prices of its product range by up to 1-3 per cent, starting from January next year.
As per reports, Indian arm of Volkswagen Group and Honda Cars India Limited (HCIL) have also indicated of their upcoming price increase policies. Prominent industry experts believe that the German auto major sales have fallen short of their projected sales, which could be a good excuse for price hike if they happen to introduce one. BMW, the country's leading sports and luxury car maker, has confirmed that it will increase cost of some of its models in Indian fleet by up to 10 per cent, with effect from January 2013.
Commenting on the announced price raise from January 2013, Mayank Pareek, Chief Operating Officer (COO), Marketing and Sales, MSIL, said, “There will be an increase in the prices of our products. The quantum will vary depending on the model but it can be up to Rs. 20,000. The hike is not restricted to just diesel models but will be extended to petrol variants as well, which remained exempted from the earlier hike due to sluggish sales.”
