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Old 23rd November 2011, 15:35   #1
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Default Rupee free fall to affect car prices!

The recent rupee free fall will advesely affect the car prices more so for Japanes and european as per the report.
Car prices of Toyota, GM, Honda, Maruti & Audi set to go up on falling rupee - The Economic Times
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Old 23rd November 2011, 15:53   #2
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Default Re: Rupee free fall to affect car prices!

Ah another price hike. So today rupee vs dollar is 52. At a later date if the rupee falls back to 45 i pray that the hike be reversed.

I remember a time when Honda and Toyota increased prices stating that Rupee VS Yen was not strong. Now the rupee to Yen has improved, did Toyota and Honda reduce prioces . A Big NO.

It is all a gimmick or excuse to raise prices.
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Old 23rd November 2011, 16:26   #3
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Default Re: Rupee free fall to affect car prices!

Cars which have high domestic content shouldn't be too adversely affected by prices other than macro-economic factors like increase in commodity prices,like steel,rubber,precious metals.

But i think CBUs and CKDs might see a big hike.
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Old 23rd November 2011, 16:46   #4
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Default Re: Rupee free fall to affect car prices!

It has now became a fashion to raise prices for any rhyme or reason. Aren't the same car manufacturers who are exporting to western markets getting more for the same exports now without any additional quality/spec improvement.

Oil and Petroleum companies, Car manufacturers and soon we will see the everyone raising prices because of this.
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Old 23rd November 2011, 16:47   #5
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Default Re: Rupee free fall to affect car prices!

I can't place the article now but I read on ET yesterday that Honda has said any appreciation in the Rupee prices vs the dollar will NOT affect car prices in India as they have long term supply arrangements with their suppliers/vendors.

Time shall tell nevertheless.
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Old 23rd November 2011, 16:48   #6
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Default Re: Rupee free fall to affect car prices!

Quote:
Originally Posted by avishar View Post
Cars which have high domestic content shouldn't be too adversely affected by prices other than macro-economic factors like increase in commodity prices,like steel,rubber,precious metals.

But i think CBUs and CKDs might see a big hike.
Yes it is logical. But it is funny that you picked precious metals in this context? Did you mean Iridium in plugs?

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Old 23rd November 2011, 16:52   #7
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Default Re: Rupee free fall to affect car prices!

Isn't Maruti suppose to have the highest localisation of parts in their cars ? If everything is procured from domestic vendors why do they have to hike prices ?

Its just a sad excuse used by companies to increase the prices, there should be a law to prevent such practices by companies. If they hike the car prices due to a weak rupee, the law should make them reverse it when rupee gets stronger.
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Old 23rd November 2011, 16:53   #8
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Default Re: Rupee free fall to affect car prices!

Quote:
Originally Posted by mayankjha1806 View Post
Oil and Petroleum companies, Car manufacturers and soon we will see the everyone raising prices because of this.
And then fall steeply to create thick recession this time affecting India as they would find far Less new buyers.

OT: In year 2012 a Less anxious Common man in India can enjoy Newton theory "What goes up is to only to comedown".
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Old 23rd November 2011, 18:25   #9
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Default Re: Rupee free fall to affect car prices!

Import content 50% for Toyota.

MUL not to increase prices

Article Window

Luxury car makers to absorb the increase for some time.
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Old 23rd November 2011, 20:22   #10
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Default Re: Rupee free fall to affect car prices!

Quote:
Originally Posted by BurningHeart View Post
Yes it is logical. But it is funny that you picked precious metals in this context? Did you mean Iridium in plugs?

BH.
I should have written "Rare earth metals".Quite a lot of them are used,like Palladium in cat converters,and these have become extremely expensive over the past year or so,especially after china reduced export of these metals.Considering china is the worlds largest producer prices have jumped multiform.
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Old 23rd November 2011, 21:36   #11
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Default Re: Rupee free fall to affect car prices!

I don't believe Maruti. They hiked the prices for diesel engines and now this. Maruti has the most localisation of any company in India. I can accept the hike if it is on their imported models but any hike in the prices of their B-segment cars will be unwarranted.
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Old 23rd November 2011, 21:49   #12
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Default Re: Rupee free fall to affect car prices!

I'm least bothered by car prices, my kids have "decided" that it's Europe for summer vacation and so has my wife . Let's hope the economy soars and rupee appreciates well by summer.
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Old 23rd November 2011, 22:05   #13
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Default Re: Rupee free fall to affect car prices!

Quote:
Originally Posted by bullock-Car View Post
The recent rupee free fall will advesely affect the car prices more so for Japanes and european as per the report.
The overall inflation in general and the rising fuel prices & high interest rates in particular are already smothering the sales. The overall mood is also not very good with the global economic crisis looming large and the Indian stock market making new lows every day. A new price increase could further aggravate the poor sales situation.

Would this prove to be the last straw on the camel's back? Only time would tell.
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Old 23rd November 2011, 22:27   #14
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Default Re: Rupee free fall to affect car prices!

"... only time will tell."

No really, what about the millions of car owners who don't need to purchase a car anytime soon? This price rise is in no way going to affect us. The cars we bought will keep the car manufacturers and dealers well funded to weather the storm long enough.
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Old 24th November 2011, 09:22   #15
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Default Re: Rupee free fall to affect car prices!

I have a different view.

If the economy tanks (and all indicators point in that direction), the offtake of new cars will drop drastically. The manufacturers will be left holding a huge inventory, with no options but to liquidate it at what ever discount the market warrants (that is what Honda is doing, inspite of production constraints due to flood in Thailand). So save up money, as good deals will be raining soon.

As European economy is also tanking, imports may also be due for price correction.

Take the case of the luxury car manufacturers. There are discounts galore as it is, any where from 2L-5L, so they have a cushion. What a tanking economy will do, is rationalise the prices to what they should have been long ago.

Even at the lowest end, MUL is discounting most models, to the tune of 20K - 50K, which on a 3L-4L unit, is quite large.
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