[chevelle]

Originally Posted by AlokSriva

This thing happens every year mate with most of the car manufacturers. You visit a dealership and you will have the funny chap there telling you sir this is the best time to buy a car, Honda/Toyota/Maruti/Hyundai/... are increasing the prices from 1st Jan.

This happened with me during 2004 and 2007 when I was buying a car in November, and hence, this opinion of mine.

Others on this forum can share their experiences too to prevent you from freaking out any further ;-)

Honestly, its two car under consideration that would be making to our garage

a sedan(for my parents) and a hatchback(for my brother). That's why its freaking me out

Originally Posted by SkyWalker

well, to be frank - there has been instances where it actually happened. Toyota claimed there will increase Corolla prices in 2009 Jan and they did that. But by and far, its been just a marketing gimmick to get over the Nov-Dec slow season.

I won't be worried too much about price increase in 10 lakh segment, though it could be a concern for fellow buyers.

Usually, its during Jan that they talk about rising price, but this time its twice, in april too. so, the reports could be true.

any insiders info for these? The scoop king Sid has any info?

[sachinj12]

"The scoop king Sid has any info?"
Wake up Sid!! Wake up Sid!!. We need to know whether this true. On a serious note, anyone who has concrete info about this please post at the earliest. Price hike of 5-10%, that too twice in a yr can shatter the dreams of many households.

[StarVegabond]

I read the info in the link, it claims 5-10% increase in the car price during 2010, first in Jan, second in April.

It also says the reasons for the increase are

1. increase in cost of commodities :

I think this is true as both steel and aluminium capacities in the coutry are full, it means the manufacturers of steel and aluminium are likely to increase prices

2. Euro IV norms: the report says engines need to be tweeked hence the cost increase is likely to be 5K-10K for petrol versions and more higher for diesel versions.

I think, this is also a possibility as the car makers have the tune and re-test the vehicle platforms, get it tested and certified by ARAI or oter competent authority in Inda. this also means obsolescence of the unsold stock of previous generation vehicles.

Apart from these two said reasons i feel there would be few other reasons which might add up to price increase

3. Increase in interest rates due to tightening liquidity and withdrawval of stimulas package by government during next financial year.

4. Weakening USD, which means (CBU) imports are going to be (relatively) cheaper, whereas the car OEMs who have very high localization content would be affected by firming up prices. This could be also be part of reason no 1 above.

5. There would be a ramping down of the car models not conforming to Euro IV, resulting in reduction of supplies to the market, where as strenghtening of the economy, returning of confidence among business community would result in increasing demand. This means demand higher than supply resulting in firming up of prices (no discounts, no freebees)

Cumulative effect could be in the range of 5%+.

[ACM]

On most occations this has been a gimmic, but on select rare occations this has actually happened, (Toyota + Honda).

In this case the 5-10% seems to be too steep and unlikely.

One impact around Apr would be due to reversal of some excise tax benefits given to revive the economy as part of the stimulus package.

The net increase due to this would be at max close to the net decrease that we have availed off since about Q1 2009.

I would recommend that car purchasers should not be moved by this and rush a decision unless they are within 2 months of buying a car.

[Ramsagar]

The hike in price are charges for BS-IV? or on the ex-showroom price?

[ACM]

Ramsagar the price hike would be in the ex-showroom price for

1) BSIV
2) Excise benifit given as counter recession measure being removed.

for both counts.

[Dippy]

Toyota are planning to hike prices of all their models come January 2010. Some info from the official press release

Toyota Kirloskar Motor to increase prices in Jan 2010

New Delhi, 1st Dec 2009: Toyota Kirloskar Motor (TKM) today announced its plans to hike prices of its key models - Innova, Corolla Altis and Fortuner. The price increase will be in the range – 1.5% - 2%. The price hike will be effective from 1st Jan, 2010.

Commenting on the increase, Mr. Sandeep Singh, Deputy Managing Director, Marketing, TKM, said, “So far, we have absorbed the increase in total costs – owing to the unfavourable exchange rate and increasing input costs – however, now we are compelled to pass on, a part of it, to the customer. We will continue to provide value for money and quality products to our customers, in line with our philosophy of “Customer First” ”.

[Sahil]

The Fortuner would touch around 19 lakhs ex-show now

[chevelle]

Toyota has already released details about increasing prices of its car by ~2% in Jan 2010.

Toyota Kirloskar Motor to increase prices in Jan 2010

I guess others will follow suit. its gonna be tough year ahead for new car buyers.

[fz_rider]

Toyota Kirloskar Motors reported it will hike prices on its models including Innova, Corolla Altis and Fortuner based on the higher input cost, currency and the strict BS-IV emission norms that will be on paper from April 2010 onwards.


Sandeep Singh, deputy managing director, Marketing, TKM, said, “So far, we have absorbed the increase in total costs – owing to the unfavorable exchange rate and increasing input costs – however, now we are compelled to pass on, a part of it, to the customer. We will continue to provide value for money and quality products to our customers, in line with our philosophy of “Customer First.”

The company will increase these said models from 1.5 to 2 percent and effects from January 2010.

[RickyC]

This hoopla of price increase in the new year is usually to push sales in December. While most of the car co's do announce hefty price increases, they usually result in a whimper.
It would be interesting to see how much are TKM ready to go forward with Innova prices considering the impending release of Indicruz in Jan from TMC.
As for Fortuner, a price increase looks immenent as post price increase too it would look value for money proposition.
For Altis, IMO it would be price increase on one side and an increase in discounts on the other...

[rr_zen]

The proposed hike is the second one I am hearing since Oct 09. Is this not a bit too early?
Even though the hike is to the tune of 1.5% - 2%, it will force buyers to part with at least 18K - 24K additionally which they might otherwise spend on accessories.

[fz_rider]

Thomas Kuehl, board member, Sales and Marketing, SkodaAuto India said,“We are considering a price hike between Rs.10,000/- to Rs. 20,000/-on all our cars in the coming month. This rise is being considered due to various Inflationary pressures and increase in raw material costs.”

[ACM]

There was supposed be a price hike in price of Altis in Oct (as per the thread start comment) but actually in Nov Dec they are giving a Rs. 20,000 discount to due to sluggish market scenario post diwali.

So though the offical report and comment would not be wrong, there is always the possibility that even after the offical price rise, discounts continue in an even bigger way.