Car prices will see a hike in January 2010
It isn’t just the vegetables and pulses which are experiencing the acute pressures of inflation, car makers too are feeling the inflationary heat. Many car manufacturers in the Indian car market are all set to hike prices in January, 2010. This price hike mainly comes riding on the back of increasing raw material and labour costs. Also, many manufacturers are facing currency pressures due to appreciating Indian Rupee and the Japanese Yen.
All these factors have come together to result in the inevitable price hike that could come into effect as early as January 1st, 2010. Toyota is one of the first manufacturers to have come out with the announcement price hikes of 1.5-2 percent on the Corolla Altis, Fortuner and the Innova.
Skoda India is another manufacturer which is planning to increase prices by INR 10,000 to 20,000 citing increase in the price of raw materials. Mahindra too is mulling a price increase. Other manufacturers howeer, have been guarded in their response and are watching the raw materials situation very closely. Whatever may be the case, the prices of most cars may see a definite increase shortly.
