Friday, September 09, 2011
By Pranjal Gera
Hikes in car price strike the Indian car market
As the prices of raw material and the appreciation of Japenese currency Yen have increased, automobile companies Toyota and Mahindra & Mahindra have decided to increase the prices of their cars by 1.5-2% from October.
This is the third time in this year that these companies have increased the prices of their cars.
Both the companies raised prices in January and April, by 1.5% and 1.5-2% respectively.
Sandeep Singh, Toyota's deputy managing director for Marketing Department, said that the company is raising prices for all cars, but Toyota Etios. The reason he gave for the price hike was that the company imports raw material from Japan, and there's a huge appreciation in the Japenese currency Yen. Though the company plans to start manufacturing key components in India, and is setting up plants for the production of the same.
The rumours are that General Motors, as well as Tata Motors are also thinking upon raising the prices of their cars.
