Rupee Vs. Dollar why it's not effecting our car prices

niv26 · 21st September 2007, 09:53

The Rupee appreciated more than 10% for the last one year, why our CBU built cars not showing up the same. It means Accord/Camry and other similar ones should have been cheaper by 10%, that's about 2 lakhs..
I know it's not forex to show daily changes, but it should get effected for one year atleast.
Any comments.

dadu · 21st September 2007, 10:55

If will affect new imports, for the ones already in stock it makes no difference. Duty has been paid already.

khanak · 21st September 2007, 10:56

Quote:

Originally Posted by niv26

. It means Accord/Camry and other similar ones should have been cheaper by 10%, .

Isnt the Accord made in India?

theMAG · 21st September 2007, 11:03

Even for India-built cars, theoretically the prices should reduce since the purchasing power of the rupee has gone up; resulting in lowered input costs for the mfr. But, car prices in India are like taxes: when was the last time we knew of a genuine reduction? EOL models being phased out/stock clearance cars are exempt from this train of thought.

dadu · 21st September 2007, 11:54

same reasons, most parts for older cars in production are localized now and very few of them are imported. for eg, Santro rubber Fuel pipe is still imported from korea.

We cannot expect manufacturers to increase/decrease their listed price based on the forex values on a monthly basis, that is why they do it once or twice an year provided it adds value in doing it.

Plus apart from input cost they also have to look at other costs like fuel price, steel prices, overheads etc.

Quote:

Originally Posted by theMAG

Even for India-built cars, theoretically the prices should reduce since the purchasing power of the rupee has gone up; resulting in lowered input costs for the mfr. But, car prices in India are like taxes: when was the last time we knew of a genuine reduction? EOL models being phased out/stock clearance cars are exempt from this train of thought.

akshat · 21st September 2007, 12:25

Rupee is stronger, purchasing power is on an all time high and people are thinking about 2nd and 3rd cars just for the heck of it. Why should one reduce the price of the cars when they are selling like hot cakes ??? No one minds extra profit if they can get away with it

niv26 · 21st September 2007, 13:14

The consumer electronics getting cheaper a lot due to high rupee value but not cars. I feel it's manufacturer responsibility to reduce the prices atleast now, assuming they can import shipment now for the whole next year. I highly doubt whether they keep inventory of one year goods.

niv26 · 21st September 2007, 13:17

Quote:

Originally Posted by khanak

Isnt the Accord made in India?

It's assembled, not made in India.

esteem_lover · 21st September 2007, 17:30

Almost all these kind of benefits will always end up being swallowed by the dealers.

pabheda · 21st September 2007, 17:43

i don't feel that should have any impact on car cost as everything is manufactured in India only and if any they r getting benefits they r keeping with them as local input cost r increasing and they for see slow down in demand still

21st September 2007, 09:53	#1
niv26 BHPian Join Date: Nov 2005 Location: Hyderabad Posts: 336 Thanked: 77 Times	Rupee Vs. Dollar why it's not effecting our car prices The Rupee appreciated more than 10% for the last one year, why our CBU built cars not showing up the same. It means Accord/Camry and other similar ones should have been cheaper by 10%, that's about 2 lakhs.. I know it's not forex to show daily changes, but it should get effected for one year atleast. Any comments.
	() Thanks

21st September 2007, 10:55	#2
dadu Senior - BHPian Join Date: May 2007 Location: Bangalore Posts: 3,803 Thanked: 462 Times View My Garage	If will affect new imports, for the ones already in stock it makes no difference. Duty has been paid already.
	() Thanks

21st September 2007, 11:03	#4
theMAG Distinguished - BHPian Join Date: May 2006 Location: Avon, CT Posts: 7,217 Thanked: 1,807 Times View My Garage	Even for India-built cars, theoretically the prices should reduce since the purchasing power of the rupee has gone up; resulting in lowered input costs for the mfr. But, car prices in India are like taxes: when was the last time we knew of a genuine reduction? EOL models being phased out/stock clearance cars are exempt from this train of thought.
	() Thanks

21st September 2007, 12:25	#6
akshat BHPian Join Date: Jun 2007 Location: Indore Posts: 69 Thanked: 19 Times	Rupee is stronger, purchasing power is on an all time high and people are thinking about 2nd and 3rd cars just for the heck of it. Why should one reduce the price of the cars when they are selling like hot cakes ??? No one minds extra profit if they can get away with it
	() Thanks

21st September 2007, 13:14	#7
niv26 BHPian Join Date: Nov 2005 Location: Hyderabad Posts: 336 Thanked: 77 Times	The consumer electronics getting cheaper a lot due to high rupee value but not cars. I feel it's manufacturer responsibility to reduce the prices atleast now, assuming they can import shipment now for the whole next year. I highly doubt whether they keep inventory of one year goods.
	() Thanks

21st September 2007, 17:30	#9
esteem_lover Senior - BHPian Join Date: Jul 2006 Location: Madras/Py Posts: 7,556 Thanked: 502 Times View My Garage	Almost all these kind of benefits will always end up being swallowed by the dealers.
	() Thanks

21st September 2007, 17:43	#10
pabheda BHPian Join Date: Aug 2007 Location: mumbai Posts: 105 Thanked: 4 Times	i don't feel that should have any impact on car cost as everything is manufactured in India only and if any they r getting benefits they r keeping with them as local input cost r increasing and they for see slow down in demand still
	() Thanks