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General Motors India will increase its car prices by 1% to 2% fron January 2009 to cover increasing prices. However, according Sr. officials, the market conditions may not improve in a 1st half of 2009.
Mr. Balendran (VP, GM India) said that the price hikes were to cover the input costs and an impact of weakening of rupee last year.
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Hyundai Motor India is planning to hike the prices of its cars by up to 2 percent in Jan’09.
Raw material prices, labour costs and other input costs have increased. We are looking to increase the prices by less than two per cent in January.
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German luxury car manufacturers Audi and Volkswagen announced to cut the prices of products by up to Rs to Rs 2.79 lacs and Rs 80,859 respectively. They made this declaration after the government’s reduction in a CenVAT by 4%.
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Now Ford India has announced the price cuts across the model range and passing on the benefits of an excise duty to the customers.
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Maruti Suzuki India is passing on the benefits of a 4 percent CenVAT duty reduction to the customers, and has cuts prices of all cars, excluding a Grand Vitara, which is the CBU import.
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HM is planning to slash the prices of its Ambassador model by Rs 10K to Rs 14,500, following 4% decrease in CenVAT to customers.
The company is delivering on benefits of a duty cut to customers who can expect slash in the Ambassador costs.
In order to increase the sales in a slowed down market, auto manufacturers are trying some new techniques to lure the customers. Likewise, the Hyundai Motors India cuts the prices of its cars by up to Rs 33K.
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Ford India has cut the prices on Fiesta by up to Rs 91000/-. The company will expects that this will attracts an extra customer into the Ford showrooms in the country.
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Honda is decided to increase car prices across models by Rs. 10K to Rs. 1.5 lakh from January 2009 to factor in increased production price due to fall of rupee and costly raw materials.
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India’s top bike maker has increased cost of some models to partly balance rising prices of the raw materials, company said.
Costs of entry-level 100cc bikes have been increased by up-to Rs. 850.
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