With the hassles of inflation and hikes, the car market in India is facing a tough time. The first quarter of the fiscal year has brought agony in the market.
In India, car prices are now observing a next hike in all the car models. Increasing raw material cost is compelling car manufacturers to go for regular hike in car prices. First time, the car prices were raised in January by almost 3%, next time the prices were raised in May-June by almost 4% and now this month is experiencing the third round of price hike.
This time the reason for increase is the high cost of all metals used in the automotive industry. Prices for aluminium, copper, nickel, plastic, steel and rubber have increased all of sudden, resulting in more input prices. This has eventually forced all car manufacturers to raise their car prices.
The net turnover of the average cost of raw materials has gone up to almost 74% from about 69% within two years.
Apart from increasing manufacturing costs, the industry is also facing problems with oil shortage, to be increased road tax and many more factors that are actually hampering the growth and success of Indian car industry.
The expected increase of car prices is about Rs 5000 for small cars and Rs 12,000 for the luxury brand models. The price of the Honda City has already been increased by Rs 15,000 and the new Honda Accord by Rs 30,000. Maruti and General Motors are trying to evaluate their best option to provide the affordable price to their customers.
Labels: Car-Manufacturers, Indian-car-industry, New-Cars
0 Comments:
Post a Comment
Links to this post:
Create a Link
<< Home