This all along with increased labor cost has led to negatively impact in margin of Automobile Manufacturers. Expect a Steep price hike to extent of 1.5% to 3% with most of the passenger car makers in January 2017.
Price Hike News
1. Maruti Suzuki: Maruti Suzuki though has achieved in 95% localization, but yet 5% of its component and parts are imported. With recent devaluation of rupee against yen and firm up rubber, steel, aluminium prices – this may likely end up with a price hike of 2% in Maruti Suzuki range from January. A Steep high to even a higher extent is expected in Popular Models like Baleno and Vitara Brezza
2. Hyundai: Been Hyundai has almost 30% export percentage, and has one among highest exports in passenger car sector – the offset impact would partially be absorbed, still Hyundai India can also increase in prices from Rs 5000 to its entry segment Eon to as high as Rs 25000 on Creta SUV Range.
3. Honda Cars India also facing in tremendous pressure due to depreciating yen, increased manufacturing costs and reduced margins due to BRV not turned to success, The Price offering with New City in 2017 and existing Jazz, Amaze can see a hike of 2% to 3%
4. Toyota has officially announced for a price hike to extent of upper end of spectrum at 3% across its range of Cars, making almost Rs 20000+ price hike on models like Etios to as high as Rs 1 Lakh on Fortuner.
5. Tata Motors, Mahindra; Domestic Makers like Mahindra, Tata Motors too can increase in prices to extent of 1% to 2% in its range
6. Ford India: Ford is Exporting almost twice the cars as sold in India. Been the Profitability increases due to falling Dollar – its expected that Ford will rather limit in price hike to extent of 1% so as to well remain competitive
7. Volkswagen, Skoda, Renault, Fiat : European Car Makers are rather having relative higher import of Spare Parts. Expect Price hike to extent of 3% with European Car Makers – VW, Skoda, Renault in January 2017
8. Chevrolet India: General Motors India is facing in tough time. Despite been an entrant in Indian market for almost 20 years – GM India seems not able to capitalize the Indian market. The price hike due to falling dollar is likely to see a price hike of Chevy Car Prices too
9. Nissan India: Nissan and Datsun Brand prices owing to weakening Yen, higher input costs likely to be in range of 1% to 3% in January 2017
10. Luxury Car Makers – Audi, BMW, Benz may also announce for a steep price hike of as high 2% to 3% making there product portfolio expensive to tune of Rs 1 Lakh to Rs 3 Lakh in January 2017