Price bump: Indian Car makers mulling one for the fourth time this year

Car Price Hike

If owning a car has become an expensive proposition with the recent deregulation of fuel prices by the Indian government, buying one has just gotten that bit expensive. General Motors India, Ford India and Toyota Kirloskar Motor are the latest crop of car makers who’re all set to effect another price hike citing increased input costs.

This reason, which is becoming pretty standard manufacturer speak nowadays will be why the car makers will hike prices for the fourth time in a span of under 8 months this year. So, if you’re in the market to buy a Chevrolet, Ford or a Toyota, you should be prepared to pay anywhere between INR 1,500 to INR 20,000 for the car model of your choice.

While car buyers might simply stomach this price rise just like they did with the previous ones, there is a very good possibility of sales tanking if the manufacturers continue to pass on the burden of increasing costs to the end user. Thus far, growth in car sales have continued unabated despite car as well as fuel prices seeing significant rises. What remains to be seen is for how long this trend would continue even as manufacturers could do well to find novel ways of cutting costs by actively adopting leaner production methods.

News Courtesy: The Economic Times

Image Courtesy: Drive.com

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