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Source: yahoonews
Maruti Suzuki India Ltd, India's top passenger car maker, on Tuesday raised the prices of some of its vehicles by 5,000 rupees to 10,000 rupees ($102 to $204) due to increased input costs and foreign currency changes.
The price of the A-Star, launched in November, rose by 10,000 rupees, while price of the petrol version of the Swift hatchback went up by 5,000 rupees from Tuesday, it said.
Maruti is 54.2 percent owned by Japan's Suzuki Motor Corp.
Yours Truly,
Very natural that is. Whenever the govt reduces duties the gap is filled by price rises so that car makers pocket the money.The reasons cited are "increased input costs and foreign currency changes". This (increased input costs) translates into as always hike in prices of raw materials,labour costs, cost of fuel etc.
Raw material-the price of steel has come down by more than 25 % and so also aluminium prices are falling in the international markets due to lack of demand.
Labour costs- the workers are on the tenterhooks to save themselves from impending job cuts.
Fuel Costs- crude oil is down at $ 37 per barrel.
As far as foreign currency changes are concerned, the rupee has stabilised against the US dollar after a free fall.
Nice excuse. Guess the 2008 stock is cleared. So with the 2009 cars rolling in, Maruti has decided to cash in on the same.
Quote:
Very natural that is. Whenever the govt reduces duties the gap is filled by price rises so that car makers pocket the money.The reasons cited are "increased input costs and foreign currency changes". This (increased input costs) translates into as always hike in prices of raw materials,labour costs, cost of fuel etc.
Raw material-the price of steel has come down by more than 25 % and so also aluminium prices are falling in the international markets due to lack of demand.
Labour costs- the workers are on the tenterhooks to save themselves from impending job cuts.
Fuel Costs- crude oil is down at $ 37 per barrel.
As far as foreign currency changes are concerned, the rupee has stabilised against the US dollar after a free fall.
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Great post, Anjan! Most cases, even when the government does provide incentives, car makers find a way to increase prices anyways. Thus, the beneficiary of tax cuts is the manufacturer, and not the customer. Also consider how extravagantly some 1.2L sub-4000 mm cars are priced, despite excise benefits!
One would think that the current economic scenario is the worst time for price hikes.
But if every car manufacturer keeps increasing prices, we will have no choice but to pay more than a car is actually worth. Sad!
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