Pricey Matters: Price Hike Murmurs getting louder

Car Price Hike

Week after week, the murmurs only seem to get louder with more car manufacturers joining the “price hike contemplating” bandwagon. Pawan Goenka, President of Mahindra’s Auto and Farm division says

If commodity prices continue to rise at the current rate, we will be forced to go in for a price hike

Echoing Mr Goenkas sentiments are other car makes like Ford India, GM India, Maruti Suzuki and Toyota Kirloskar who are also grappling with heightened raw material costs. With the car sales going at full steam, manufacturers seem wary of making any move that might upset the applecart.

But how long can they hold out with their bottom lines under strain is the question that has had no clear answer so far. All we can do is to wait and hope that the raw material prices do see some correction in the short term. Or else, July 2010 could be the month that sees a flurry of price hikes from manufacturers across the auto sector.

News Courtesy: The Economic Times

Image Courtesy: Parkers

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