Auto India, Car India

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2010 could be written in golden words as the Indian automobile market saw a 30% hike in the sales figures of various auto players.

The last decade has been a fruitful year for Indian automobile industry as it saw many players realizing the potential of the sector. It included launching their models, enjoying a significant run and not to mention making a good position for themselves following a stint of high quality products.

But, having said that, it shall also be said that the New Year 2011 has not started on a positive note for Indian automobile sector as major automobile giants like Maruti, General Motors (GM) and Hyundai increased their car prices owing to increased hike of production and input cost of the raw materials.

Last month saw Hyundai and Maruti Suzuki increasing the price of their models by a light margin of 2.2 percent and owed it to the ever increasing prices of raw materials. Due to an increase in the price of raw materials, the profit margins of auto companies have begun to shrink and they are forced to do the hike. These companies are also hoping to continue getting the patronage of their valued end-users as the price hike gets transferred to them.

Tata Motors also joined Maruti, Hyundai and General Motors (GM) and its increase on the passenger car models varies between 3000 and 150000 INR. As far as commercial vehicles are concerned, the hike varies between 1500 to 30,000 INR.

With price of petrol getting increased, petrol-run cars are set to be more costly in the near future and another round of price hike across various models could be a reality soon.

Keep checking Autoindiaforum.com to unlock hot smoking news from the blistering planet of automobiles!