Monday, December 02, 2013
By Kamal Swami
Auto makers to hike prices of their vehicles from January 2014
After announcement of hiking price by German luxurious car makers Audi and BMW other leading car makers like Maruti Suzuki, Hyundai Motors, General Motor, Toyota and other leading car manufacturers have also announced that they will hiking prices of their products from January 2014 as an impact of increasing production costs. As reported earlier German car makers Audi and BMW had announced to increase the prices of their vehicles about 5% to 10%from January 1, 2014.
In the words of Mr. Rakesh Srivasta, Senior Vice President, Sales and Marketing, Hyundai Motor said, that although company has not yet decided about the percentage of increase but it is sure that it will hike the prices its vehicles from January 2014. In the words of Mr. Srivastava due declining value of rupee cost of importing raw material is rising company is compelled to hike the prices of its vehicles.
On the other side country’s leading car making company MSIL has also revealed that due increasing cost of production and declining value of rupee it will hike the prices of its vehicles. Similarly another leading car manufacturing company General Motors has also announced that it will increase the prices of its all vehicles including cars and multi utility vehicles from 1-2%. Commenting on the announcement of price hike by various car making companies Mr. Deepesh Rathore, Director at Emerging Markets Automotive Advisors, an automotive research and advisory firm said that in favorable conditions the car makers may even bear little loss with a hope that in future conditions will improve and they will be able to cover the loss. But in suspicious as exists in current scenario decision taken by companies to sustain their profits seems correct, especially in present situations when it is not sure that whether the situation will improve rapidly or not.