Friday, July 22, 2016
By Kriti Gupta
Festive season might witness hike in prices of cars
It is reported that with an objective to meet the cost of production, the manufacturing companies might hike the prices of their entire portfolio in coming months. It is reported that cost of material like copper, aluminium, and steel are rising at jet dynamic speed making it difficult for car makers to continue the production of cars at same cost. It is speculated that car maker are getting ready to hike the prices of cars during festive season. Although it is also believed that this move from car makers will impact their sales to huge extent, but except this option at present car makers do not have any other option to retain the profit margin.
Commenting on this Mr. Rakesh Srivastava, Senior, Vice-President (Sales and Marketing) HMIL said, "With major raw material prices going north, there is a challenge to maintain current price points”. Moving ahead Mr. N Raja, Director and Senior Vice-President, Marketing and Sales, TKM, said, 'We have been absorbing all the additional costs but if the trend continues we will have to pass on a part of this cost to our customers".
According to reports the prices of steel during last six months have gone up-to 36% and the same has been for copper and aluminium. With this fluctuation in value of Yen across the world has also impacted the cost of manufacturing vehicles. It is speculated that the same issue can also affect the Japanese car market.