Auto India, Car India

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The biggest carmakers in the country are left with no choice but increase the car prices to counter the impact of the rising import costs caused due to weakening rupee. This move is planned despite the recent downfall in the car sales. Although it may affect the sales adversely, this move was imperative, especially for carmakers importing auto components from overseas. The auto companies that plan to increase the prices include, Maruti Suzuki, General Motors, Toyota and Honda.

Many carmakers import approximately 10 to 40 per cent of auto components from overseas and last week with the rupee hitting an all-time low of Rs 52.73. This has forced the carmakers to consider price rise to manage the impact of the rising prices of imported components. Companies like Toyota are hit with fluctuations in both rupee (depreciating) and yen (appreciating) and has been put in a situation to pass on the brunt to its customers. Speaking about the same, Sandeep Singh, deputy Managing Director (Marketing), Toyota Kirloskar Motor said “We are feeling the double whammy of these current fluctuations and some of the pressure would be passed on to customers”.

While Toyota plans to increase prices by January 1, General Motors is planning to hike prices before January. Speaking on the same, P Balendran, Vice President (corporate Affairs), General Motors said “Besides the slowing market condition, the rising cost of imports is definitely putting a lot of pressure on us. We are planning to pass on the extra cost to customers and now this may even happen earlier than the already planned hike in January”.

BMW recently announced a price hike and therefore, besides the above stated companies a price hike coming from companies such as Audi can also be expected. The depreciating rupee and the rising import costs have forced almost all the major players to introduce a price rise.