Following the weaker performance of rupee against dollar, the car manufacturers in India have started to hike the prices on most of their vehicles.
Despite poor demand and negative sales car companies like Mahindra & Mahindra has raised the prices by Rs. 6000 on most of their models while General Motors has hiked the prices on their newly launched Enjoy by Rs.10000.
Other car manufacturers including Mercedes-Benz , Audi India, Maruti Suzuki, Hyundai Motor, Toyota Kirloskar are likely to follow the trend but will wait for market conditions to improve before doing so.
The decision to hike the price was taken Mahindra following a recent slump in sales last month.
The company faced a 13% declination of sales and so hiked the prices of all their models except their flagship model XUV 500 and the South Korean import Ssangyong Rexton by upto Rs. 6000 as stated by Pravin Shah, Mahindra's automotive division chief executive.
General Motors India had reported a decline in sales by about 10%, had raised prices of its other hatchbacks and sedans in June to offset the increase in logistics costs. In order to dampen the impact and atone the suppliers, P Balendran, vice-president (corporate affairs) at General Motors India said "We have decided to increase the prices of all Enjoy models by Rs 10,000 with effect from July 1". This desperate decision has been taken as the rupee breached the 60 mark against dollar recently.
The poor performance of rupees is set to impact the European markets also as most of the critical parts, engines of the cars is manufactured in India. Michael Perschke, India head of luxury carmaker Audi has decided to raise the price by 3% as the expensive sedans, supercars have to be imported from oversees.
Some other carmakers including Maruti Suzuki have refrained from hiking the prices as they are still reviewing the situation and will decide on the following month. The company's sales had declined by 12.6% on the month of June.
Despite poor demand and negative sales car companies like Mahindra & Mahindra has raised the prices by Rs. 6000 on most of their models while General Motors has hiked the prices on their newly launched Enjoy by Rs.10000.
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| Chevrolet Enjoy |
Other car manufacturers including Mercedes-Benz , Audi India, Maruti Suzuki, Hyundai Motor, Toyota Kirloskar are likely to follow the trend but will wait for market conditions to improve before doing so.
The decision to hike the price was taken Mahindra following a recent slump in sales last month.
The company faced a 13% declination of sales and so hiked the prices of all their models except their flagship model XUV 500 and the South Korean import Ssangyong Rexton by upto Rs. 6000 as stated by Pravin Shah, Mahindra's automotive division chief executive.
General Motors India had reported a decline in sales by about 10%, had raised prices of its other hatchbacks and sedans in June to offset the increase in logistics costs. In order to dampen the impact and atone the suppliers, P Balendran, vice-president (corporate affairs) at General Motors India said "We have decided to increase the prices of all Enjoy models by Rs 10,000 with effect from July 1". This desperate decision has been taken as the rupee breached the 60 mark against dollar recently.
The poor performance of rupees is set to impact the European markets also as most of the critical parts, engines of the cars is manufactured in India. Michael Perschke, India head of luxury carmaker Audi has decided to raise the price by 3% as the expensive sedans, supercars have to be imported from oversees.
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| New Maruti Swift RS |
Some other carmakers including Maruti Suzuki have refrained from hiking the prices as they are still reviewing the situation and will decide on the following month. The company's sales had declined by 12.6% on the month of June.
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