Wednesday, November 23, 2011
By Pranjal Gera
Toyota, Chevrolet, Honda car prices to be increased, credits depreciating Indian rupee
Automobile companies in the country are all set to increase the prices of their vehicles in view of declining Indian rupee that recorded its lowest in last 32 months. The carmakers are already going through a terrible phase due to hike in petrol prices and increasing rate of interest that has led to slowdown in auto sales this year.
Now, the companies like Honda Motors, Toyota Kirloskar, Audi and General Motors are bound to pay more due to the import of vital components and spare parts.
Mr. Sandeep Singh, Deputy Managing Director for Marketing and Sales at Toyota Kirloskar said that in sight of depreciating Indian rupee, revise in the vehicle prices will be seen from the first month of 2012. The company had previously raised the prices in October 2011 by 1 percent to 1.5 percent and now also expects to increase in the same range or even more, he added.
The Japan based company’s hot sellers Toyota Innova and Toyota Fortuner consists of 50 percent imported spares, which will make it costlier due to downfall in Indian rupee.
A price rise cannot be ruled out due to persisting decline of Indian rupee against the Euro and American dollar, said by Mr. Michael Perschke, Audi India’s Managing Director.
General Motors India Vice President, P Balendran stated that the company is under a constant worry, firstly with auto sales and now with drop in Indian rupee and it is certain that the firm will forward this increase to the auto market. As per him the usual price revise was scheduled in January 2012, but now it is expected earlier than the planned.
The American auto giant imports engines of its Chevrolet brand’s Aveo, Optra, U-VA and Spark.
Last week, the market leader Maruti Suzuki has increased the prices of its diesel cars and hence eyes no further augment in the car costs.
