Most of the car makers in India are increasing the car prices from January, 2011. As per industry sources, the companies have been facing cost pressure in the input cost, especially the essential raw materials cost and other production cost are increasing leaps and bounds. The companies for a long time were absorbing the prices of the production but now the profits are shrinking which has compelled the auto makers to increase the car prices. As per the reports, the automobile makers utilize this time of the year to increase the sale.
Maruti Suzuki India, the biggest auto manufacturer in India in terms of sales recently announced that, the company intends to raise the prices of its cars. The company reasons, the hike is due to the imports getting dearer because of yen getting stronger and the massive price increase in the raw materials. Maruti, though is still deciding on the per cent for hike price in its car models. Mayank Pareek, Managing Director, Sales & Marketing, Maruti Suzuki India, said that, it has been observed that in recent months, the price of the inputs have increased to a greater extent. The company was absorbing the price of production for a long time but now with profits margins decreasing, the company has to increase the price of its cars.
Hyundai Motors declared that the company will increase the price of its cars in the Indian auto market. The company will stretch the price by 2 per cent and for the Japanese auto giants the hike is a result of the rising cost pressure. Arvind Saxena, Director, Sales & Marketing, Hyundai Motors said that, the company incurred the raw material cost but now with profit margins dimming the company wishes to pass it on to the customers. The company plans a hike of 1.5 to 2 per cent in the prices of its vehicles.
Well, the Japanese auto maker annoubnced the price hike right after General Motors in India declared the increase in its pricing. The American auto maker plans to raise the price on its models by 2.5 per cent. The company stating the same reason of the cost pressure, the new prices will be commencing from January 2011.
P Balendran, the Vice President of General Motors, India said that, the prices of its car models will increase between 1.5 to 2.5 per cent which will be effective from first week of January 2011.
