Car Manufacturers Absorbing High Input Cost
After the heavy rise in fuel and steel prices, most of the car makers decided to absorb the high input cost to lure consumers. But, how long will they absorb these input costs?
In the previous month, looking at the critical car market conditions, the car manufacturers had offered heavy discounts on car prices. Unfortunately, some of them have reduced the amount of discount offered last month.
Hyundai is still continuing with the actual discount offers but Maruti and Tata have cut down their promotional offers. Maruti Zen Estillo had a discount of Rs 26,000 last month which has been brought down to Rs 16,000. Similarly, the discounts on Wagon R, has been brought down from Rs 21,000 to Rs 10,000. Tata also brought down the discount offered on Tata Indigo from Rs 25,000 to Rs 20,000.
Labels: Car-Discounts, Input-Cost
Steel Price Reduces
Cheers! There’s good news for car manufacturers and car lovers. Rising inflation has forced the government to pressurise the steel companies to cut down their steel costs. The government has a belief that this reduction will at least bring some sort of relief for both the car makers and consumers.
All the steel companies and manufacturers have agreed to cut down the cost by 10% and review a complete list of steel retail price. The cut down price is put into immediate effect to almost Rs 48,000 per tonne.
Reduction in steel price will eventually lead to low cost production as the input costs will be less. This was help in reducing a great burden over the minds and hearts of car manufacturers. Car makers will be able to sell cars at a lower price tag, which further boost the sale.
Labels: Input-Cost, Steel-Price
Car Manufacturers Encountered by Input Costs
How much do you think is the input costs of manufacturing a passenger car? Yes, the input costs of manufacturing a car has increased tremendously followed by the increase in steel and fuel prices. This rising costs is hurting the core of all car manufacturers.
Steel is believed to account 60% of a car’s weight and apart from that plastic, aluminum are also used in the manufacturing process. Followed to the increasing steel prices, plastic, aluminum and rubber are also facing inflationary pressures. All together increases the total input costs of car production and eventually becomes a leading cause of worry, dismay and distress for the manufacturers.
You’ll be glad to know that even under heavy pressures these manufacturers are trying to absorb the maximum increase and pass on affordable cost price to car consumers.
Labels: Fuel-Prices, Input-Cost
