Home BusinessCar prices set to increase by January
Come New Year, cars will be costlier with automakers like Toyota and General Motors today saying that they will hike prices by up to three per cent due to rising input costs, while the country"s largest car maker Maruti Suzuki India is still evaluating the situation.
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"We will be increasing the prices of our models by 2-3 per cent from January first week to offset rising input costs," General Motors India (GMI) Vice-President P Balendran said.
GMI sells models, including hatchback Chevrolet Spark and Aveo UVA, sedans Aveo, Optra, Cruze and SUV Captiva.
Toyota Kirloskar Motor also said it will increase the prices of three of its models -- Innova, Corolla Altis and Fortuner -- by 1.5 to 2 per cent from January 1 next year.
The price hike decision has been taken in view of increasing input costs and unfavourable exchange rate, Toyota Kirloskar Motor (TKM) said in a statement.
"So far, we have absorbed the increase in total costs owing to the unfavourable exchange rate and increasing input costs. However, now we are compelled to pass on, a part of it, to customers," TKM Deputy Managing Director (Marketing) Sandeep Singh said.
Maruti Suzuki India (MSI), however, has not taken a final decision on price hike, although the rising input costs are putting pressure on its margins.
"The increasing input cost is our biggest concern. After the commodity prices reached its bottom, now all materials like steel, aluminum and rubber are rising," MSI Executive Officer (Marketing and Sales) Mayank Pareek told PTI.
"Besides, we import from Japan and in the recent times the Yen is appreciating," he said, adding the company is trying to absorb it internally and work out if the pressure could be absorbed without passing on to consumers.
Also, the Euro IV emission norms is going to be implemented from April next year and the company is working on that, Pareek added.
When contacted Hyundai Motor India spokesperson said the company is also assessing the market situation and it has not taken a final decision on the price hike.
Similarly, Honda Siel Car India also said it has no immediate plans for a price hike.
"As of now there are no plans for a price hike but if stimulus package is removed then of course (there"ll be a price hike)," HSCI Vice-President Jnaneswar Sen said.
Last week, M&M President Automotive Sector Pawan Goenka had said that the company was absorbing input cost rise as much as possible but if they continued to rise, then the firm might have to pass it on to the consumers.