Some good news: Top Indian Automakers rule out price hikes

Price Hike Hit Common Man

A while ago, before anyone else could, we brought you buzz about yet another round of car price hikes due to the increased pressure of input costs being faced by the country’s auto makers. In a startling yet happy change in tack, major Auto makers like Maruti Suzuki, General Motors India and Hyundai India have come out in the open to say that they would absorb the impact of rising costs.

This, as they feel that another price hike coming close on the heels of the one in March-April, earlier this year, could simply derail the bull run that the car makers have been having in the past few months and especially in May 2010, when monthly sales hit an all time high. Here’s what a couple of Motown folks had to say about the price hike not being effected anytime too soon.

Price hike is highly unlikely. Although input cost has gone up, there is competitive pressure. There has been some decreases, for example, in steel prices, but it is still very high compared to the last year

is what Maruti Suzuki chief general manager (marketing) Shashank Srivastava said.

There have already been three hikes this year. While in January, car companies increased price to cover input costs, the other two hikes came on account of increase in excise duty an change in emission norms. We do not see any further hike in near future in spite of input cost pressure

is what HMIL director (sales and marketing) Arvind Saxena said.

So there, you have it, the leading players in the car industry do not want to hike car prices anytime in the near future. Meanwhile, if the raw material and input costs do shoot up at the same rate at which they are currently, how long can car makers really hold off from effecting price hikes? That, is the big question.

News Courtesy: The Financial Express

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