Car makers to pass on impact of falling rupee from Jan
With rupee falling against the US dollar in the recent months, car makers like Hyundai Motor, Ford, General Motors and Toyota Kirloskar will hike the prices of their vehicles by up to three percent from January 1.
New Delhi: With rupee falling against the US dollar in the recent months, car makers like Hyundai Motor, Ford, General Motors and Toyota Kirloskar will hike the prices of their vehicles by up to three percent from January 1.
The country's second-largest car maker Hyundai Motor India will raise the prices of its vehicles by 1.5-2 percent from January next year.
"The price increase will come into effect in January, 2012. We are in the process of working out the specific increase on the various models. Broadly, the increase will be 1.5-2 percent across all models," Hyundai Motor India Director Marketing and Sales Arvind Saxena told media.
Rising inflation, higher fuel costs and the falling rupee compelled the company to look at a price increase, he added.
Of these the rupee depreciation has been putting severe pressure on firms importing a substantial amount of components from overseas.
It has fallen drastically over the past few month from the level of around Rs 45 to a US dollar, raising the cost of component imports. The Indian currency fell today by 30 paise to close at 51.71/72 against the US dollar on the Interbank Foreign Exchange Wednesday.
Ford India also said it will raise prices of its entire range of models by 2-3 percent from next month.
"For the last three months, the rupee devaluation is happening. The rising input costs are also hurting us. We have now decided to increase the prices of all our products by 2-3 percent," Ford India Executive Director (Marketing, Sales and
Service) Nigel Wark said.
The company will hike the prices of its models from January 1, 2012, he added.
Yesterday, General Motors India announced to raise the prices by 1-2 percent from January next year. It will hike the price of its Beat diesel by Rs 15,000 from next month.
"In case of Beat diesel, we had an introductory price. Due to the current currency fluctuations and rising commodity prices, we have no option but pass it on to consumers," GM India Vice President P Balendran had said.
Early this week, Toyota Kirloskar Motor too had announced that a price hike of 1.5-3 percent in all models manufactured in India will take place from January 1, 2012.
Other car-makers, including Maruti Suzuki India, are also mulling price hike to offset rising input cost.