Maruti, Toyota, GM and Honda to head for another revision up to Rs 25,000

Published On Nov 28, 2011 12:31 PM By Meenal for Maruti Omni

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The falling rupee in the financial market has got the car manufacturers worried this time. Now it has become imperative for the car manufacturers like Maruti India, Toyota India, Honda and General motors to pass on their costs to the consumers. This time the consumers are likely to see a huge hike in the car prices in the range of Rs 25,000.

Maruti, Toyota, GM and Honda to head for another revision up to Rs 25,000

Now, why is this price increase coming at a time when the car market is witnessing snail paced sales. Obviously, the input costs are getting higher and higher by each passing day. Most of the companies including country’ s leading car manufacturer Maruti Suzuki India has their components imported from Japan. And the rupee value during the past week has reached the rock bottom during the last week at 52.73 a dollar.

Maruti, Toyota, GM and Honda to head for another revision up to Rs 25,000

This is a 17% depreciation in the last two months. The low rupee value impacts the import costs drastically and thereby reduces the profit margin. Therefore, it becomes inevitable for a car manufacturer to pass on the costs to the consumers. Maruti India invests a sum of Rs 8,000 crores on imports and makes far less on the vehicles it exports to other countries.

Maruti, Toyota, GM and Honda to head for another revision up to Rs 25,000

All in all, the net margin of MSI is said to suffer by 15% just because of the rupee depreciation. While this is the story of a domestic car manufacturer, a global auto giant like Audi has most of its cars imported as Completely Built Units (CBU). These are the car manufacturers who face the maximum wrath. As it is, they have to pay over 100% excise duties on imported cars. On top of that, the now higher exchange rates.

Maruti, Toyota, GM and Honda to head for another revision up to Rs 25,000


If rumours are to be believed, taking the present conditions into account, Audi India is likely to boost their car model prices by Rs 50,000 and no less.  To cap it all, the consumers are going to have a hard time ahead. First, the high petrol prices, second the high lending rates and now the third high is going to jump on the bandwagon – the high car prices. The car industry seems to be more unpredictable than ever before with never a dull moment among the usual flurry of car launches.

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piklu de
Nov 30, 2019, 7:35:55 PM

I need maruti omni cng van

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