After the rupee hit an all-time low on Tuesday, coupled with steadily rising input costs, Indian carmakers are again contemplating price rises in the face of lower consumer demand.
Market leader Maruti Suzuki, which raised prices of its in-demand diesel models by INR10,000 (US$189) last month, said it would raise prices again next month. This time, it will be across its product range.
Go deeper with GlobalData
“[The] rupee has depreciated by over 18% in the last two months and that is impacting us,” Mayank Pareek, managing executive officer (marketing and sales), told the Hindustan Times. “Next month there will be a price increase.”
Hyundai Motor India also said it would raise prices 1.5% to 2% from January.
“We are in the process of working out the specific increase on the various models,” said Arvind Saxena, director (marketing and sales), Hyundai Motor India. “The pressure of rising inflation, higher fuel costs and sharp rupee depreciation has compelled us to look at a price increase on our models. All these factors have now made it very difficult for us to absorb the rising costs.”
Ford and General Motors have also announced price increase from January. Ford said it would raise prices by up to 3%, while GM expects a 1-2% hike, the report added.
