Auto India, Car India

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Here is news that may burn holes in your pocket especially if you are planning to buy a brand new car this July.Yes, you heard that right! Car manufacturers in India are devising plans to increase the prices of the car from July, 2010 primarily due to the significant rise in the raw material costs.

Another factor for the forced increase in the price tag of the car is the push up price of various commodities.The price of steel and rubber has increased by leap & bounds especially in the months of April-May, 2010 up to 20-25%.

However, owing to the huge sales of cars rising up to 35% when compared to the same period last year, the car makers will not have any risk in losing the robust Indian car market.

Its better that people who have plans to buy their cars can rush up now save their money to some extent.

Rajesh Jejurikar, chief of operations, auto division, Mahindra & Mahindra was quoted as saying on the price rise that is likely to happen next week.Since material costs have shot up like anything, it becomes inevitable for manufacturers to pass on the manufacturing costs to the consumers, forms the basic crust of the reasons carmakers are citing in favor of their culminating decision on price increase.

Companies like M&M, General Motors, Ford, Toyota and Maruti are conducting meetings with their vendors and trying to contain the price hike to a minimum.

But, if commodity prices continue to rise at the current rate, we will be forced to go in for a price hike,

said Pawan Goenka, president, auto and farm division, M&M.

The pivotal question doing the round is, are the car makers going to lose out in the sales of the car pertaining to higher MRPs?

Absolutely no! Was the instant reaction of most of the manufacturers and they were basking in the light of the truth that passenger vehicles sales in India has increased by over 35% in April-May, 2010 when compared to the last years statistics and they can safely pass on the burden to their potential buyers.

Most of the auto majors have confirmed the hike except for Maruti Suzuki and Honda who would announce their stipulated hike in the next month.

So, the moral of the story is, if the dream of owning a car is up on your mind, make it up a reality now, or you would have a hiked dream to fulfill on!