Friday, September 27, 2013
By Kamal Swami
Maruti to increase prices of its vehicles by Rs. 10,000 from October
In current scenario when every renowned car manufacturing company is announcing an increase in price silence of country’s leading car manufacturing company Maruti Suzuki India Limited was creating surprise among car enthusiasts and industry experts. However MSIL had said that it is keeping watching on changing situation and will decide its strategy accordingly. Now MSIL has also announced to hike prices of all its vehicles by Rs. 10,000 from October’s first week. Commenting on announcement of price increase Mr. Mayank Pareek, Chief Operating Officer, MSIL said that company was looking to hike the prices of its vehicles from quite some time and after company’s cost of production went high due to declining value of rupee it decided to increase the prices of its vehicles.
Mr. Pareek also said that with increasing rate of interest and declining value of rupee are the main reasons behind decision of hiking prices because the existing economic situation do not allow company to retain its existing prices. Moving ahead Mr. Pareek also added that this hike will differ according to model which will be from Rs. 3000 to Rs. 10,000. It would be important to mention prior to it this year during January also company had increased prices of its all vehicles.
Last few months have been tragic for Indian economy and Indian rupee has witnessed decline in its value against US $. Although during last couple of weeks value of dollar had reached on its peak but after situation has started improving slowly and getting under control, especially after the precautionary measures adopted by Reserve Bank of India. Going through regular announcement of hike in prices of vehicle by companies had greatly influenced the Indian car market to huge extent and companies are noticing decline in their sales. According to industry experts this situation will continue in coming months also and companies will notice decline in their sales by the end of this financial year.