Come January, car prices are set to go up. Rising inflation, higher fuel costs and sharp depreciation in rupee have led car makers of all categories to think in terms of upping prices. The price increase will range from one per cent to three per cent for cars across brands. Car-makers Hyundai Motor, Ford, General Motors and Toyota Kirloskar have already announced their decision to hike prices. They have defended the move by citing their inability to absorb the rising cost of production
Hyundai is in the process of working out the specific increase on the various models. Broadly, the price increase will be 1.5 per cent to two per cent across models, according to a company release.
Ford India, for its part, will be raising prices by up to three per cent from next month. “For the last three months, the rupee devaluation is happening. The rising input costs are also hurting us. We have now decided to increase the prices of all our products by 2-3 per cent,” Ford India Executive Director (Marketing, Sales and Service) Nigel Wark said in a release.
Elaborating on the impact of currency fluctuations, Mr. Wark said: “Our models like Figo has very high local content. However, our suppliers import technology and raw materials and they are facing the burden…. Overall, our operating cost has increased in recent months.”
The company, it may be recalled, had hiked prices thrice this year. Ford India’s small car Figo is priced between Rs 3.71 lakh and Rs 5.73 lakh. Sports utility vehicle Endeavour is sold at Rs 17.07 lakh-Rs 20.13 lakh. The company sells the sedan Fiesta Classic for Rs 5.50 lakh-Rs 8.20 lakh, while the new Fiesta is offered between Rs 8.25 lakh and Rs 10.44 lakh.
General Motors too announced a rise in prices of its cars by 1-2 per cent . However, the company has increased the price of its Beat diesel car by Rs 15,000 with immediate effect. “In case of Beat diesel, we had an introductory price. Due to the current currency fluctuations and rising commodity prices, we have no option but pass it on to consumers,” according to P. Balendran, Vice-President, General Motors India.
Toyota Kirloskar Motor, too, announced a price hike of 1.5-3 per cent in all models manufactured in India. The quantum of hike will vary from model to model. The new rates will be finalised by third week of this month.