Car companies to hike prices by Rs 4,000-16,000

NEW DELHI,(April 17, 2008). Car prices are likely to increase 2-3% in the next few days amidst rising input costs. Premium cars will cost Rs 14,000-16,000 more and entry-level cars will be dearer by Rs 4,000-6,000, industry sources told ET.

Maruti Suzuki India (MSI), which sells more than 50% of the total cars in India, is analysing the quantum of hike to neutralise the impact of high commodity prices like steel, aluminium, nickle, plastic and rubber.

The sales and marketing head of MSI Mayank Parekh told ET: “It is tough to manage the input cost situation. We are currently working on the price strategy so that the burden on the customer is minimum. There’s no sign of commodity prices easing.”

The other player contemplating a similar hike is Honda. Company vice-president (sales and marketing) Jnaneshwar Sen said: “We are looking at increasing prices, but are still undecided on the exact hike. We are studying the commodity prices as well as the currency rate fluctuations in the international market (for imports from Japan and Thailand) before announcing any price revision on our cars.”

source:indiatimes.com