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Thursday, 25 March 2010
 Just the other day we mentioned that the Mahindra Renault Logan would come out with a smaller body. The dealers were burdened with the existing car stock and the makers too were annoyed. Just 500 units of the Logan were being sold every month. Mahindra-Renault decided to offer a discount of Rs 50,000 on the petrol variant and Rs 18,000 discount on the diesel counterpart. All this would be in addition to the corporate discounts that employees from certain organizations already enjoy. If you thought that that wasn’t good enough, here’s something more. The sales this year had gone so high for almost all cars. They walked with heads held high. Just then, post union budget, the steel prices went up and so did the car manufacturing costs. The manufacturers may have thought that the car prices could further be increased. However, that will not happen. The sales have gone very low now. Car makers say that the recent increase in excise duty has impacted the new car bookings. In a few days, the BS-IV emission norms will be effective in 13 cities. The fact is that more than 50 per cent of the car sales volumes in the months of January and February 2010 came from these cities. So, the existing car stocks need to be cleared before that. What do you think the manufacturers are doing to clear the space? Offering huge discounts seems to be the only solution. Car sales this month have gone so slow that the manufacturers are getting a little worried. So, their discounts this year are 10 to 15 per cent higher than last year. Once the cars are upgraded to the new emission norms, the prices are surely going to rise. Isn’t it better to buy one before that? The discounts, right now, range from Rs 25,000 to Rs 50,000. Whoa! Isn’t that a real good deal? The multi-brand outlets are topping it with an additional Rs 10,000 to Rs 15,000 discount on the smaller cars. If you think this is too good to be true, hurry and grab a car before it’s too late. These multi-brand outlets buy cars in bulk from dealers and so, they get a better discount. At a time when the sales are real low, why not pass on the additional discount on to the customer? That would be a great idea and they are doing it. There will be an Rs 35,000 discount on the Spark with a three-year maintenance package too. While Maruti Suzuki dealers are giving a discount of Rs 42,000 on the WagonR and Rs 26,000 on the Alto, you can expect an additional discount of Rs 10,000 and Rs 9,000 respectively from multi-brand outlets on these cars. The Ritz and Estilo from Maruti come with Rs 27,000 discount when bought from dealers. The same cars are being offered at multi-brand outlets at Rs 33,000 and Rs 37,000 discounts respectively. The Mahindra Xylo and Logan come with a discount of Rs 50,000 while multi-brand outlets sell it with an additional Rs 5,000 and Rs 15,000 discount respectively on the two cars. The Hyundai i10 and Santro come with Rs 28,000 and Rs 26,000 discount tags. Resellers are offering the same vehicles with discounts of Rs 35,000. Tata Indica Xeta comes with a discount of Rs 30,000 and resellers are offering the same with an additional discount of Rs 8,000. Whoa! Mighty discounts everywhere and everyone benefits. Long live the discount deals. Labels: BS-IV norms, Car-Cost, Car-Discount-Scheme, Car-Discounts, Car-prices, Car-Sales, Cheap-Cars, Discounted-Cars, Emission-Norms, Low-Cost-Cars, Low-Prices-on-Cars
Tuesday, 19 January 2010
Maruti Suzuki declared to raise the price of its car models as a result of the increase in input costs, including that of steel. Now Tata Motors and Mahindra & Mahindra have joined the same bandwagon to offset input cost.
The Indica cars and the Indigo range from Tata Motors stable will be dearer. In the same way, the Xylo, Scorpio and Bolero from Mahindra & Mahindra have become costlier now.
Tata Motors has hiked the price ranging from Rs 5,000-8,000 on the Indica and Indigo car models. India’s famous SUV maker Mahindra & Mahindra has also raised the price of its most successful Scorpio SUV by something between Rs 6,400 and Rs 9,300. While The Mahindar Xylo has now become costlier by Rs 4,600 and the Bolero now comes with Rs 4,800 more.
The primary reason for the price hike is the rise in price of the inputs required to make cars and car parts.
The price rise on Tata Motors and Mahindra & Mahindra automobiles will be applicable on the new 2010 models.
India’s second largest car maker Hyundai is also contemplating a price rise. While Honda and Toyota have hiked their car prices as a result of the appreciation of Yen. Labels: Car-prices, Cars-in-India, Indian-car-market, Indian-Car-Prices, Indian-cars, Mahindra-Mahindra, Maruti-Suzuki, Tata-Motors
Wednesday, 17 June 2009
Finally the much awaited Fiat Grande Punto will ply on Indian roads. This large hatchback of its kind is available in three engine options- the 1.4-litre FIRE Petrol, the 1.3-litre MultiJet diesel and a surprise excise special 1.2-litre FIRE Petrol. All engines are mated to a 5 speed manual gearbox. The diesel engine is capable of generating an output of 75bhp.The car will be available in three variants, namely, the Active, Dynamic and Emotion. The Grande Punto is an absolute jaw dropper. Its teardrop shaped headlights set at far corners of the car's front end are too cute. The highlights, exterior lines, wheel arches and the tight crease running between them, the side mirrors and the bumpers fore and aft make the car extremely attractive. The car has abundant space to offer and a large boot to organize all the paraphernalia. The driver's seat is crafted for better sitting posture and the seats are made of the best fabric. The dashboard is finely set and the white dialed instrument cluster are prize winners and the steering wheel snugly fit in the palms of the driver. The pricing of Fiat Grande Punto is as follows (all prices ex-showroom Delhi): 1.2 Petrol (Active) Rs.3,99,000/- 1.4 Petrol (Dynamic) Rs.4,66,000/- 1.4 Petrol (Emotion) Rs.5,06,000/- 1.3 Diesel (Active) Rs.4,85,000/- 1.3 Diesel (Dynamic) Rs.5,16,000/- 1.3 Diesel (Emotion) Rs.5,56,000/- The Grande Punto has been Europe’s best seller since 2005. The launch of the Fiat Grande Punto comes at a time when Maruti has released the Ritz hatchback which falls in the same segment taking competition to new levels. Fiat eying for the chunk of the market space with its all new Grande Punto will be competing with other popular cars such as Maruti Suzuki Swift, Hyundai i20, Chevrolet Aveo U-VA and Tata Indica Vista which also falls in the same premium hatchback category. Labels: Car-prices, Fiat-Grande-Punto, New-Car-Launch
Wednesday, 6 May 2009
All prospective car buyers can now think for luxury and mid-size cars as these segments is likely to see a price slash. It is said that popular sedans like the Maruti SX4, the Honda Civic and luxury car may become cheaper by up to Rs 50,000. Nothing is confirmed but the ministry of heavy industries and finance ministry is on discussion to waive off the specific excise duty charged on mid-size and top-end cars last year. Cars with engine sized between 1,500-2,000cc were forced to pay an additional tax of Rs 15,000, whereas it was Rs 20,000 on all vehicles above 2,000cc engine. But as the tax was forced on ex-factory price of vehicles, the car manufacturers transferred the burden to the consumers with sales tax and other taxes. Now it is realized that such kind of tax planning does not make any sense and is unfair for some car segments. Because of such tax structure even the sales were affected as it discouraged the consumers from buying cars like the Honda Civic and the Toyota Corolla. After the implication of the light tax structure, the price on these cars will come down by Rs 20,000 to Rs 50,000. If this rule is put into practice, it will be a great offering for the buyer as well as the car manufacturers. It will attract more buyers that will in turn help the car industry to revive. Labels: Car-prices, Luxury-Cars, Mid-Size-Cars
Tuesday, 5 May 2009
A few years ago, car modification was completely unimaginable. But now car lovers can get any used car with considerably less price compared to a new car. Furthermore, the modified cars can be customized to suit individual tastes. Interestingly, this trend is gaining popularity in most of the metros. Surprisingly, the trend is prevalently seen in the luxury car segment. Modification gurus intelligently customized a dull and shabby car into a stylish and appealing vehicle. They then restore the cars as completely new one imparting them with entirely new attire with re-designed interiors, new upholstery and fresh designs on the dash, new set of wheels, new lighting system and a new coat of painting. The most striking thing is that the old luxury cars like BMWs, Mercedes-Benz, Toyota and even some top-class Mitsubishi cars can be owned by spending only Rs 5 Lakh to Rs 6 Lakh. The expenses involved in the modification of these cars are cost of acquiring an old car and cost incurred for the modification. Car styling gurus reveal that earlier customers usually did not prefer to opt for car customization as the costs were very high and there were scarcity of modification experts in the country. But nowadays many car studios in metro cities provide this service at a very cheap price. And when the customers have the freedom to choose the design according to their taste at their budget, this concept will definitely attract masses. Labels: Car-Customization, Car-prices, Luxury-Cars
Monday, 30 March 2009
car prices hike has become a recent buzzword amidst recession. In recent times, Indian car market has witnessed a major jump in car prices of many models. Now Mitsubishi Motors has revealed its plan to increase the prices of all its models. Mitsubishi cars will see a price hike of 4-5 per cent that will be applicable from 1st April. The company assembles its cars in Chennai through a joint venture with Hindustan Motors. Since the localisation levels in Mitsubishi models are still not very high, the company is finding it difficult to combat with the expenses on the imported kits due to rising value of Yen. Let’s have a look as to how much the Mitsubishi cars will see a price surge. To start with, the SUVs models Outlander and Pajero will get a price hike of around Rs 1 Lakh. The Cedia and the Lancer will be increased by Rs 50,000 and Rs 40,000, respectively. Also, the recently launched 2009 Montero priced at Rs 42 Lakh will see a steeper hike due to increased duty levies. Labels: Car-prices, Indian-car-market, Mitsubishi-Cars
Tuesday, 17 March 2009
If you are an ardent fan of Toyota cars then you should get ready to spend more on them. Following the current price hike trend in the industry, Toyota has recently announced a hike of up to Rs 50,000 on the Innova and the Corolla Altis. As both the Innova and the Corolla Altis are the two leading cars from Toyota’s stable, the price hike has become essential for the company to successfully roll out the required numbers of cars. The price of the Toyota Innova is increased in the range of Rs 10,000 to Rs 25,000 whereas the price of Corolla Altis is raised in the range of Rs 10,000 to Rs 50,000. Toyota reveals that the decision of price hike is taken eyeing the recent changes in the rupee/dollar and yen/dollar exchange rate. The rising operational costs are also one of the key reasons behind the price increase. Till date somehow the company was able to absorb the cost. Now it’s really become tough for Toyota to absorb the costs. And in order to survive in the fluctuating market and to maintain a steady growth, it has pushed some of the pressure towards the buyers. Labels: Car-prices, Toyota-Cars, Toyota-Innova
Wednesday, 4 March 2009
Car manufacturers enjoyed a good share of pie when the government announced the 4 per cent cut in CENVAT in December 2008. But despite the reduction in the excise duty, many car manufacturers like Hyundai Motors and Maruti Suzuki increased the prices for its models blaming the rising input costs. Following them, even other car companies like Honda is also likely to hike its car prices of all the models. During the announcement of the excise cut, the revenue department supposedly highlighted the purpose of the reduction that was solely done to benefit car buyers. Initially, the prices were slashed but the car companies in the veil of high input cost hiked the prices again beating the purpose of the cut ordered by the government. Eyeing all this, the government is now in talk with the car companies asking them to pass on the complete benefit of 4 per cent cut in CENVAT to the consumers. It is disappointing that the car manufacturers took away the benefits that were totally entitled for the consumers. Labels: Car-Manufacturers, Car-prices, Honda-Cars
Tuesday, 3 March 2009
The price of the sporty and agile Honda CR-V is set to increase by about 30 per cent in the coming months. The main culprit to blame for this is the devaluation of rupee as major portion of the components is imported from countries like Japan and Thailand. Following the Honda CR-V, other car models from the house of Honda are also likely to witness a jump in prices. The Honda CR-V is chosen first by the company to hike the price because the car is imported to India as a completely built unit (CBU). The company is aware of the fact that it will saddle the customers, but if the prices are not increased, Honda cars will see a major loss in business. Being an icon for style and performance, the dazzling SUV is sold in 160 countries with more than 2.5 million accumulated sales units. It shares a good number in the sales figure of Honda cars in India. Now with the price hike, the car may experience a cold market but it can only be substantiate after the price is actually raised in practicality. Labels: Car-prices, Honda-Cars, Honda-CR-V
Wednesday, 28 January 2009
Maruti cars will be now heavy on pockets as the company has hiked prices of all its high-end cars including the Swift, SX4, and the Swift Dzire. The beginning of the year 2009 is witnessing car price jump across many car models. Car manufacturers like General Motors, Honda Seil India and Mercedes-Benz have already announced to increase their car prices. The increase in car prices is basically in response to the pressures of high input cost and fluctuating currency exchanges. Many might have a question waving in their minds as to how fluctuating currency exchanges affect car prices. Simply because many car components are directly imported and any fluctuation in the dollar value in turn impact the car prices. The price of recently launched A-Star hatchback has been increased by Rs 10,000 while prices of all SX4 variants have been hiked by Rs 9,000. The new prices of the Swift Dzire for both petrol and diesel variants is now raised by Rs 7,000 and the base version of Swift petrol will be available with an additional cost of Rs 5,000. If you are planning to buy higher variants of diesel counterpart of the leading hatchback Swift, then you have to pay an additional amount of Rs 6,000. But if you have plans to buy the Maruti 800, Omni, Alto, WagonR, Zen Estilo, Gypsy, Versa or the Grand Vitara, then you can relax as the company has not changed the prices of these car models. Labels: Car-Manufacturers, Car-prices, Maruti-Suzuki
Friday, 23 January 2009
The Indian car market is still struggling with credit crunch and is far away from making a complete comeback to revival. In this time of financial meltdown, it has become difficult for car manufacturers to sustain in the uncertain market condition. They are increasing prices across their respective car models to survive in the recession infected car market. Leading players like Maruti Suzuki, Toyota, General Motors, and Honda have already announced a hike in their car prices nullifying the discounts offered earlier in response to the excise benefits. For a long time car manufacturers have absorbed significant level of cost escalation. But now, none of them are able to intake them depreciating their own profit margins. Even Mercedes-Benz is not able to face the challenge posed to the company's margins and decided to raise prices of its entire car models available in the Indian market. The decision to increase car prices is purely against an unavoidable pressure from the combined effect of global recession, fluctuating input prices, and adverse exchange rates. Till now, the rate of hike has not been decided by the company but it’s confirmed that the increased prices will be effective from mid-February. Labels: Car-prices, Indian-car-market, Mercedes-Cars
Thursday, 22 January 2009
The Indian used car market is in an exponentially growing stage and the credit for this goes to the increasing car prices. Following the footprints of Maruti Suzuki, Toyota, Hyundai, Honda, Ford, and General Motors, Tata Motors also enters the used car business. Tata feels that the used car market is in developing stage dominated by an unorganized sector and thus introduces 'Tata Motors Assured' certified pre-owned car programme that will offer reliable and quality pre-owned cars. The new certified programme is commenced with a desire to provide one-stop solution to all its valued customers who are willing to exchange their cars for new Tata cars. All the used cars will then undergo stringent inspection by skilled and highly trained engineers to ensure quality and reliability of the cars. They will be available with one year/20000 km extended warranty along with three free services and will have less than 5 years old, non accidental and with not more than two owners history. But at present, Tata's pre-owned car programme is introduced on a pilot basis in 10 major Indian cities including Mumbai, Delhi, Bangalore, Hyderabad, Chennai, Pune, Ahmedabad, Chandigarh, Ludhiana, and Vapi. It will subsequently spread across the country in a phased manner. Labels: Car-prices, Tata-Motors, Used-Car
Wednesday, 31 December 2008
The calender year 2008 turned out to be a year of see-saw for the car industry stung by the inflation and global recession. These all has compelled car manufacturers to hike their car prices. Many car manufacturers including the Honda Motors, General Motors, and the Maruti Suzuki have plans to increase the prices of their car models. Recently, as part of Christmas and New Year celebration car manufacturers have announced attractive discounts and schemes to push car sales amid sluggish car market. Alluring discounts and schemes attracted buyers and the car manufacturers did saw some silver lining on the dark clouds. But now the New Year is going to play a little harsh on consumers with the expected increase of car prices. Hyundai has declared to hike its car prices by 2 percent from January 2009. The price hike is said to be the result of increasing price of raw material, labour costs, and other input costs. Presently, Hyundai is one of the leading players in India with many popular and admired car models. Its cars has steal the hearts of many and with the latest addition of Hyundai i20 in its car portfolio, Honda will definitely climb a step forward on the ladder of success. Labels: Car-prices, Hyundai-cars, Indian-car-industry
Friday, 26 December 2008
It’s time for Audi lovers to buy the scintillating Audi A6. The complete range of Audi A6 is now available at zero percent finance. The company announces a special offer for all Audi customers. Audi A6 range includes four variants, 2.8 FSI, 3.2 FSI Quattro, 2.7 TDI and 3.0 TDI Quattro. The entire range is now available with zero percent finance and a total of four years warranty. This move is taken by the company to provide maximum benefits and extra ordinary service quality to all Audi customers. This special offer on the A6 clearly indicates that this is one of the most exclusive cars in the Audi’s portfolio. The company has high hopes that this may enhance customer value of the car. Some may think that after announcing this offer, the company must have increased the car prices. But the same is not true. Audi had recently reduced the prices of all its homologated car models to pass the complete benefits of the revised excise duty to its customers. Over and above the existing offer, the company announces a special 0% finance on the A6 range. So, this gives a double opportunity to Audi admirers to rejoice the elite A6. Labels: Audi-Cars, Car-prices
Thursday, 18 December 2008
 After most of the car manufacturers has reduced their car prices to pass the benefits of excise cut to their car customers, German car manufacturers are now following the suit.Audi and Volkswagen have also announced a cut in their car prices in response to the lowered excise duty rates. Excitingly, the prices of the Audi and Volkswagen car models are reduced by up to Rs 2.79 Lakh and Rs 80,859, respectively. You would be happy to know that the price of the Audi A8, A6 and the A4 is reduced by Rs 2.79 Lakh, Rs 1.51 Lakh and Rs 1.21 Lakh, while Audi's SUV, Q7 is now cheaper by Rs 1.85 Lakh. Likewise, the Volkswagen has slashed the price of its sedan Jetta in the range of Rs 46,086 and Rs 57,814 and Passat in the range of Rs 75,674 and Rs 80,859 across India. Government has made a right move by lowering the taxes to arrest the economic downturn whilst giving a new opportunity to the car manufacturers to raise their sales graph. Labels: Audi-Cars, Car-Manufacturers, Car-prices
In this time of credit crisis, falling car sales, and slow economy, car manufacturers have no other option than to cut down their productions. It’s depressing to know that the leading car manufacturers across the country are now switching over to lower production capacities in response to the declining consumers demand. Car manufacturers like the Toyota, Honda, and the Tata Motors have been forced to revise their sales target due to falling car sales. These manufacturers already have a piled car stock with them. And to ease the impact of recession, they are trying various offers and schemes on car consumers to bring them back to the showrooms. But all attempts are going in vain. The unstable and unpredictable Indian car market has placed a big question mark on the consumers as well as the manufacturers. The Toyota has cut its production by about 30% after posting a fall of 48.55% car sales in November. In continuation, the Tata Motors has also announced a cut in their production to go well with the squeezing car demand in the market. Honda is also under the influence of major slump and defers its expansion plan while cutting down production at its Greater Noida plant situated near Delhi. With such an imbalance in the car market, it’s difficult to judge what the future holds. Car manufacturers are also waiting for the New Year dawn with high hopes that the market situation may improve. If the efforts to ease the impact of recession be successful, these manufacturers would again increase the production capacities in line with the increasing demands. Labels: Car-Manufacturers, Car-prices, Car-Sales
Wednesday, 17 December 2008
With so many car manufacturers announcing price cut on their car models, the Indian car market is now on a toss. At one end car companies are reducing their car prices and on the other end speculations of increase in car prices by January 2009 are high in air. Indian car manufacturers including the Maruti, Honda, Hyundai, General Motors, and the Hindustan Motors have announced a cut in their respective car models in response to the excise cut benefits announced by the government. All these players including the German car manufacturers, Audi and Volkswagen, aim to pass the complete benefits to their customers. According to them, this may boost the falling car sales further accelerating the slow moving car market. But, then there are confirm news and few speculations that states that many of the car models will become costlier by January 2009. Some Indian states are planning to increase their local taxes which would eventually increase the price of all car models in those corresponding states. Talking about Honda and General Motors, they have already announced that they are increasing the prices across the entire portfolio of their car models. Even Maruti is speculated to increase the car prices of its car by January next year. With this, the car market is placed on a toss with an imbalance in the expected market performance. If the speculations of price hike are true, the short-term price cut in December this year would not put any major impact on the position of the present day car market. And if speculations are just to gain back the waning car buyers, car sales may boost to some extent without actually reviving the fortune of the Indian car industry. Car manufacturers definitely have to hunt for a fresh approach and innovative strategies to bring back the lost status and position of the Indian car market. Labels: Car-Manufacturers, Car-prices, Indian-car-industry
Monday, 15 December 2008
Potential car buyers in the country are rejoicing the recent price cuts announced by the car companies in response to the reduced taxes. But, there are speculations that this celebration will get over by January 2009 as most of the car manufacturers are set to raise their car prices to about 2 to 3% in January. This will then neutralize the benefits of excise cuts and bring back the car market to its original position. Though the move is taken with a view to improve the profit margins. There are speculations that almost 31 car models in the Indian car industry will experience a lift in their prices. Major car companies like Maruti, Honda, General Motors, and Toyota feel that now it is difficult for them to hold the current price levels of their car models due to increase in the input cost of production with prices of steel and aluminium soaring high. All these car companies are planning to increase the prices of their respective car models in the range of Rs 6000 and Rs 58,000. But, we wonder whether this is true or not. There are possibilities that the car manufacturers have announced the proposed price hike just to threat and awaken the waning car consumers so that they can clear their inventories. With a thought that cars would become costlier in January, many car consumers may purchase cars this December. And this in turn will help the car companies to have good sales in December. Labels: Car-Manufactures, Car-prices, Indian-car-industry
Friday, 12 December 2008
Though the car prices have been recently reduced by car manufactures in response to the excise cut, the prices may likely to hike up again with the increase in local state taxes of few Indian states. After a long time of falling car sales and dropping economy, Indian car manufacturers are rejoicing the reduction in excise duty announced by the government. But, the industry’s fortune may again start dwindling.  States like Delhi, Himachal Pradesh, Punjab, and Rajasthan are expected to increase their local-level taxes which would definitely bring down the benefits of the lower excise rates. These states are following the trend started by Andhra Pradesh, Gujarat, Kerala, Maharashra, Tamil Nadu, and Karnataka. The latter have already increased their state taxes and the former are in the process to levy new local taxes. This would unfortunately increase the car prices.
Car consumers who were celebrating the cut in car prices just a few days back are now feeling the pinch. The pinch is even harder and painful because the state taxes are to be levied on the ex-showroom price of the car models. If it was on the ex-factory prices, these customers may have still enjoyed the benefits of excise cut.
Now, it has become difficult to say whether the car market will bloom this December or not. Potential consumers have also felt a harder pinch because the price cut announced in response to the excise cut was lower than the price increased due to the higher state taxes.
December may still prove to be a prosperous month for the car market because the increased taxes are still to be announced. Maybe, till then, potential car buyers can make up their minds to decide on their choice. Customers may take advantage of the reduced car prices now and make quick bookings. But that’s only for a short period. Labels: Car-Manufacturers, Car-prices, Car-Sales
Tuesday, 9 December 2008
Mitsubishi feels happy to pass on the benefits of reduced excise duty to its customers. The company has combined the benefits of lower excise duty with the year-end schemes. All the five Mitsubishi cars running on Indian roads will now be available at cheaper price tags. The ex-showroom price of Montero and the recently launched appealing Outlander is slashed by 1 Lakh, they now carries the price tag of Rs 38.31 Lakh and Rs 20.35 Lakh, respectively. You can buy the Pajero at Rs 20.25 Lakh, Cedia at Rs 9.80 Lakh, and the Lancer at a price of Rs 7.74 Lakh. For the company this is the right time to boost car sales. And for consumers, this is probably the perfect time to buy a Mitsubishi car as this offer may not last for long. Labels: Car-prices, Car-Sales, Mitsubishi-Cars
Wednesday, 26 November 2008
Hold your breath Honda car lovers. Honda cars will now be available at an expensive price tag. The company has decided to increase the price of its entire portfolio of cars by Rs 1 Lakh to Rs 1.5 Lakh from January next year. This is depressing for those who are planning to buy Honda cars and obviously relaxing for those who have already purchased one and are rejoicing the elegant ride. But, if anyone of you is actually keen and sure to buy any of the Honda cars then you still have time to buy with the actual price tag. As the company has decided to implement the raised prices with the oncoming New Year, you can make up your mind to stamp upon a confirmed decision to buy a Honda car. Many of you must be thinking that during this time of financial downturn, Honda is actually doing injustice to car consumers by increasing the car prices. But it’s not their fault as well. The production cost with the increasing cost of raw materials has increased so much that the car manufacturers is forced to take such an initiative. The weakening of Indian Rupees has further fueled the senses of Honda. This eventually compels the company to increase the price tag of all its car models. The price of Honda’s leading SUV, Honda CR-V is expected to increase by Rs 1.5 Lakh, luxury sedan Accord would go up by Rs 30,000 – Rs 50,000 and the most successful car in Honda’s fleet, Honda Civic, would have an elevated price tag of Rs 10,000 – Rs 20,000. So, now it is the right time for you to make a decision to purchase a Honda car. Labels: Car-Manufacturer, Car-prices, Honda-Cars
Tuesday, 18 November 2008
Car manufacturers are struggling hard to cope up with the hard hit of global recession. Some are cutting down their car prices, some are replacing expensive car components with cheaper one. While many are offering special discounts for corporate and government employees and few are even cutting down their production. At the other end of the spectrum automotive manufacturers strongly feel that Government must also move hand in hand with them to help stoke the demand in the economy. They believe that if government reduces the excise duty, it will help them to reduce car prices and deliver best to their esteem customers. Car manufacturers think that reduction in excise duty, indirect taxes, fiscal stimulus, and improved infrastructure would help boost auto industry in the country. Surprisingly, the rate of inflation is coming down with the reduction in oil prices. All take this is as a golden opportunity to look ahead to the future growth of the auto industry in India. Industry, Government, and Economy all look ahead towards a brighter vision. Labels: Car-Manufacturers, Car-prices
Monday, 4 August 2008
Maruti Suzuki reported a 7 % fall in the first quarter of the fiscal year. Maruti’s net profit dipped from Rs 499.6 crore in the corresponding period of the last fiscal year to Rs 465.9 crore in April-June 2008. Even though the sale in the first quarter of the fiscal year rose to about 18%, the net profit skids. What can be the reason of the low net profit? The answer is simple and straight. In the past few months, the company has witnessed depreciation of assets and spike in expenses which has eventually reduced the profit margin. High inflation and increasing material costs has forced the company to absorb some portion of the input or production costs. This action by Maruti resulted in higher number of car sales but unfortunately, the net profit of the company dipped. Another reason for the lower net profit was the extra Rs 62 crore that the company paid for the new depreciation policy. Apart from this, the company had made huge expenses in advertising and branding activities to lure waning customers during inflation. These activities helped the company register a good percentage of domestic sales but failed to earn profits. Is this the condition for all car manufacturers or only Maruti has suffered a loss? Labels: Car-prices, Car-Sales, Maruti Suzuki
Tuesday, 29 July 2008
 Skoda increases price tags of all its car models! This is nothing new in the car industry. Recently many car manufacturers including Tata Motors, Hyundai Motors, Maruti Suzuki, and Honda Seil India have increased the cost price of all their cars. With so many car manufacturers raising the car prices due to high input costs, Skoda India, Czech auto manufacturer, also announces an increase in prices of all its car models in India. The company announces a hike in the range of Rs 10,000 to Rs 25,000 and this hike will be effective from August 2008. Apart from high input costs, the company is also swayed by the surge in freight costs and high cost of raw materials. Inspite of the high input costs, the company is putting in hard efforts to absorb maximum costs so that the price hike has minimized impact on prospective car buyers. Will the efforts of Skoda be successful? Labels: Car-prices, Luxury -Cars, Skoda
Monday, 28 July 2008
 Here comes the car to edge your thoughts from the rising inflation! Mahindra-Renault has launched the new version of the Logan named as Logan Edge with the view to relief consumers from rising fuel cost. Driven by the highest fuel efficiency of Logan, the venture has introduced a new version of the car with higher capabilities to challenge high inflation. Priced between Rs 5 Lakh and Rs 7.15 Lakh (ex-showroom-Delhi), the Logan Edge is produced in limited edition based on the extensive customer feedback and responses. The venture has considered this launch as an endeavour to offer the best to all its customers. Limited edition is produced to test the car performance and judge further responses from the customer. The new Logan Edge comes with a blend of style, elegance and interesting features like reverse parking sensor, beige leather seat covers, Kenwood music system, wood finish center console and USB connectivity. The car is available in both the petrol and diesel variants with engine capacities between 1.4 litre and 1.6 litre. What do you say? Will the Logan Edge be successful in facing the current situation? Will the car beat its ancestor, the Logan? Labels: Car-features, Car-prices, Mahindra-Renault-Logan
Wednesday, 23 July 2008
The news is all around that car drive will soon become costlier by the end of this month. The joy of rising and driving your dream car will now pinch your pocket as well as your heart. The lifetime Motor Vehicle (MV) tax has increased by 2%. This means another addition in the car costs. Cars will really become costlier and make a hole in your pockets. If you really don’t want to repent afterwards, then go ahead and buy a car now. Two-wheelers owners can relax because they have been spared. The taxes are increased only for cars and other automotives. After a rise of 2%, the tax on cars pricing below 5 lakh have increased from 10 to 12%, for vehicles between the price tag of Rs 5 lakh and Rs 10 lakh have increased from 11% to 13% and tax for those costing more than Rs 10 lakh is increased by 14% to 16%. Some of your favorite cars will really become costly. After the increase in road tax, the ex-showroom price of Maruti Alto will be around Rs 2, 83,699; Maruti Swift will be priced around Rs 4, 42,201; Maruti SX4 around Rs 6, 67,054; Hyundai Santro around Rs 3, 49, 658 and Honda City will be priced at Rs 11, 06,000. This move is expected to earn revenue of around Rs 100 crore per annum for the government, so a good profit for the government but what about the car buyers who will again move back from their car purchase. The government desires to use this earned revenue for developing the infrastructure and roadways of the country. The cause is wise but is it good to pass the burden on car buyers? Labels: Car-prices, new cars, Tax on Cars
Wednesday, 18 June 2008
Small cars going higher! Tata is still uncertain about maintaining the cost price of the Nano at a tag of Rs 1 lakh because of the hike in crude and steel prices. With this uncertainty of Tata, Bajaj Auto and Renault-Nissan also announced a further increase of their small car that is about to roll out on Indian roads in 2011. Most of us were glad when Bajaj announced the launch tag price as Rs 1 lakh. But now the price is expected to increase to about Rs 1, 20,000 during the commercial launch. Everyone is waiting to drive one low-cost car but now dreams are shattered because no car will launch with the ex-showroom price of Rs 1 lakh. Wish the prices could reduce but again that’s a dream. Labels: Car-prices, Small-Cars
Tuesday, 3 June 2008
Honda is a leader in premium car segment in India. It has successful models like City, Civic and CR-V which makes its powerful portfolio. Honda, which manufactures most of its components in India, was under the market pressure due to the hike in raw materials price. It could not escape the rise in input costs of the raw materials like rubber and steel.
After having raised the prices of its car in the range of Rs 5000 to Rs 10000 in May, it has now taken a U-turn. Honda Siel Cars India is cutting down rates of all its sedans by Rs 5000. The new price has been introduced from 1st June. The price cut is also in response to the central sales tax cuts by 1% from the existing 3%. The price of the City will be cheaper by Rs 3,000 and the Civic will be available at Rs 5000 lesser cost. The company is in the right tract to attract its customers. Labels: Car-prices, Honda Cars, Sedans
Thursday, 8 May 2008
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. Steel forms a major component of car manufacturing and the slightest rise will result in a huge leap in overall costs. The rollback has brought a huge relief to car buyers particularly the small car buyers, for whom the slightest rise will add burden to the total expenditure. It could also give some more time to buyers who have missed the April deadline to go for cars now, before the new car prices are announced this month. Labels: Car-prices, price hike
Car companies have citied reasons of rising costs of steel and aluminum as primary cause of hiking the car prices. Now, it is the time for rubber to repeat the story. Major Indian Tyre manufacturers such as Ceat and JK Tyres have conveyed to car companies of a price hike. The companies have stated that the cost of rubber has increased by 22 percent in 2008 alone. The hike could be witnessed again and again unless government brings the costs under control. If this happens the price of cars may rise further. Even as car companies have been trying to achieve affordable prices for cars, while they cater to larger number of customers, market forces have not been favourable. If the price continue to increase unabated, the cars could soon become unaffordable by masses. Labels: Car-prices, Tyres price
Monday, 21 April 2008
The rising steel prices have put a lot of pressure on car manufacturers to raise car prices. The cost of steel has increased by 3.5 percent. The prices have risen despite of efforts by the union government and steel manufacturers. The added cost of steel will increase inputs cost which will have a cascading effect on the entire cost of the car. Mahindra Renault has already increased prices of Logan, and Tata has upped prices on its entire range of commercial vehicles. So far, the small car segment remains untouched by the hike in steel prices. Maruti Suzuki and Hyundai have postponed their decision to hike prices of cars. Tata has decided to weather the crisis and has retained the same prices for its passenger cars. However, the rising inputs cost could force the car manufacturers to crack and increase prices on their products. So all those who have been waiting to get a new car, now is the time to have one. Labels: Car-manufacturers-in-India, Car-prices, Rising steel price
Wednesday, 16 April 2008
Are car manufacturers selling us Indian cars at prices higher than that they are sold in Western countries. But most car manufacturers would say that they are holier than thou! Look at this – Skoda is selling Laura which puffs out 200 bhp power for European markets. But, the same car come with half power -100 bhp, is sold in India. And the price is same! Don’t you think that car manufacturer’s should lower down the prices and fix it according to the performance! Look at Skoda’s performance. It does not feature in any premium car manufacturer list in Europe, but in India it is doing roaring business. It shows that car manufacturers still think Indians car buyers can be convinced to buy anything they give. Labels: Car-manufacturers-in-India, Car-prices, Indian cars
Wednesday, 13 February 2008
The Volkswagen Passat is priced exorbitantly high in this country. I can’t imagine that people can pay such high prices for cars that are considered ordinary in Europe and US. I own a Lexus, which has far better features and offers a better ride quality. And I come to India to visit my folks and am surprised at the costs! I can actually get very good cars in Europe at a much lesser price than in India. I can’t imagine how it is that Indians are spending such huge amounts on ordinary cars. I hope that they conduct a thorough research before giving out lakhs of rupees for ordinary machines. It is like paying too much for too less. Article submitted by JaiLabels: Car-prices, Driving imported cars, Imported cars, Volkswagen
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Just the other day we mentioned that the Mahindra Renault Logan would come out with a smaller body. The dealers were burdened with the existing car stock and the makers too were annoyed. Just 500 units of the Logan were being sold every month. Mahindra-Renault decided to offer a discount of Rs 50,000 on the petrol variant and Rs 18,000 discount on the diesel counterpart. All this would be in addition to the corporate discounts that employees from certain organizations already enjoy. If you thought that that wasn’t good enough, here’s something more.
