Rupee free fall to affect car prices!

trakesht · 15th December 2011, 14:47

Personally, this sounds like hogwash
Any automobile manufacturer worth his salt will have hedged regarding foreign exchange rates and this rise in spot price should not affect his import bills.
Me thinks this has more to do with the annual exercise of "impending price increase come January 1"

Durango Dude · 15th December 2011, 15:35

The rupees free fall can make many 'banana' republic's proud, one can not predict a 20% erosion of value in 6 months. Today the INR has breached the 54 to a US$ mark. The rate of increase in prices of a particular brand will depend on the % of localisation and market share of the car maker. The new comers viz Renault/Nissan will be hit due to increased import content of the cars and also low market share.

1100D · 15th December 2011, 22:25

This is the perfect time for Mahindra and Tata to cash in on the situation, they could actually offer year end discounts and place full page ads stating "buy Indian, we are not affected by rupee devaluation".

15th December 2011, 14:47	#31
trakesht BHPian Join Date: Aug 2007 Location: pune Posts: 37 Thanked: 18 Times	Re: Rupee free fall to affect car prices! Personally, this sounds like hogwash Any automobile manufacturer worth his salt will have hedged regarding foreign exchange rates and this rise in spot price should not affect his import bills. Me thinks this has more to do with the annual exercise of "impending price increase come January 1"
	() Thanks

15th December 2011, 15:35	#32
Durango Dude Senior - BHPian Join Date: Mar 2009 Location: Chennai Posts: 1,948 Thanked: 5,120 Times View My Garage	Re: Rupee free fall to affect car prices! The rupees free fall can make many 'banana' republic's proud, one can not predict a 20% erosion of value in 6 months. Today the INR has breached the 54 to a US$ mark. The rate of increase in prices of a particular brand will depend on the % of localisation and market share of the car maker. The new comers viz Renault/Nissan will be hit due to increased import content of the cars and also low market share.
	() Thanks

15th December 2011, 22:25	#33
1100D Senior - BHPian Join Date: Jun 2006 Location: Calcutta Posts: 4,390 Thanked: 4,096 Times View My Garage	Re: Rupee free fall to affect car prices! This is the perfect time for Mahindra and Tata to cash in on the situation, they could actually offer year end discounts and place full page ads stating "buy Indian, we are not affected by rupee devaluation".
	(1) Thanks