Brace yourselves, yet another Car Price Hike imminent!

Car Price Hike

In January, we saw a rash of car makers effecting the price hikes citing rising input costs. In what appears to be reprise of the same situation once again, car buyers face the gloomy prospect of yet another price hike by car makers. Just like last time, this price hike too will be due to the increasing raw material costs.

As a result, small cars like the Maruti Suzuki Swift and the Hyundai I20 may cost up to INR 10,000 more while premium cars like the Honda Civic and the Toyota Corolla could cost up to INR 25,000 more. Obviously such a move might result in car sales skidding as the 2011 union budget might throw up a double whammy in the form of a 2% excise duty hike.

In effect, cars have steadily been getting costlier and with the fuel prices going through the roof with another fuel price hike in the near term not being improbable due to the the volatile situation in the middle east, the automotive industry might face another stern test in the coming days as buyer sentiment wanes. This might just give rise to a cleaner and greener technology like the hydrogen e-cell becoming mainstream sooner than later. Watch this space.

Via TheEconomicTimes

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