Nandini Sen Gupta, TNN | Jun 8, 2013, 11.12AM IST| Times of India|
CHENNAI: The sliding rupee and creeping increase in input costs has already led to a number of car companies opting for price mark ups ranging from Rs 2000-10,000. However, the price hike season is definitely not over and companies that have either not taken a high enough hike or not gone in for a mark up yet are watching the situation and will take a call on future price increases depending on how badly the input costs bite.
Said Vinay Piparsania, head of marketing, Ford India: “We are monitoring the exchange rates as well as other factors that are pushing up costs. Should the situation continue to sustain, we would need to have a look at possible price increases.” Ford is not the only company that has a price hike on the agenda. Others like Toyota too told a similar view. According to a top Toyota Kirloskar official, the company is currently watching the situation and the extent to which its foreign exchange hedging can neutralise the rupee slide. “But if the situation continues and other factors like input costs also pinch, we will think about a price increase,” said the official.
A number of companies have already taken price hikes in April and May. Take Honda which took a price hike in two phases through April and May.
“We raised prices of the City (Rs 3000), Brio (Rs 2000-10,000) and Accord (Rs 5000) in April and followed it up with a Rs 3000-8000 increase in Amaze prices and Rs 6000-14,000 hike in CRV prices effective June 1,” said Janeshwar Sen, senior VP-marketing and sales, Honda.
Similarly General Motors India has taken a price increase of upto Rs 10,000 from this week and others like Hyundai Motor India are watching the situation closely. Most car companies take an “inflation call” in March-April for small price increases that neutralise some of the increase in input costs. But the rupee’s constant slide has come as a mid-year shock to the auto industry.
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