The news of roll back in steel prices has pushed the car companies to re-work on the quantum of price hike. In the last week of April, Maruti had announced that it was considering a price hike but had not specified on the increase. Now, General Motors and Mahindra and Mahindra are also re-working on the quantum of increase in costs. The car companies were contemplating on increasing costs by Rs 4,000 to Rs 16,000.
Labels: Car-prices, price hike
4 Comments:
It is good news that companies are re-working on their prices, Maybe with the steel prices rolled back it will not be as high as anticipated. I believe that right now the car prices are just right for overall growth of the sector. A slight increase would mean a dip in sales. Companies have to be careful when deciding on the quantum of increase.
The hike in steel price has taken away the sleep not only from car makers but also from buyers.The car makers are unable to take the right decision about the price. But one thing is in favor of the manufacturers, the car sales are booming up now, due to the fear of car price hike.
The government has worked hard to reduce the price of steel so that we can still get affordable cars. However, apart from the four-five companies no other companies have hinted at a price rise at all. So is the hike in inputs costs only for these four-five companies. I think there is a lot that needs to be answered before the price hike is announced.
It is the best thing that happened to car industry after the budget sops. The Indian car companies have been crying like babies about the input costs. I wonder whatever happened to all that fantastic profits they made over all these years. They cannot be complaining about it unless it is hitting them hard, which i don't think is happening. Cars are selling in record numbers and production lines have been busy in the past couple of years. They can just absorb the high costs without the slightest discomfort.
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