The Hindu : Business : Car manufacturers to raise prices from New Year

Online edition of India's National Newspaper
Wednesday, Dec 19, 2007
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Car manufacturers to raise prices from New Year

Staff Reporter

NEW DELHI: Under pressure from rising input costs, leading car manufacturers have decided to hike prices of all their models from January.

While Maruti Suzuki is likely to increase the car prices by up to Rs. 12,000 across all its models, Hyundai Motor India is all set to hike prices of all its cars models between 2 and 3 per cent.

Skoda Auto has already said it will raise the prices across all models by Rs. 20,000 from January, while other companies, including General Motors and Ford, have also indicated that they too are unable to cope up with the rising input costs and may go in for a price rise in January. However, Tata Motors and Mahindra & Mahindra are the only two major companies that have clearly said that they have no plans to jack up the prices of their models from January.

Car manufacturers have been citing higher costs of raw materials such as lead and aluminium, rising freight charges as well as petroleum products as the reasons for increasing the vehicle prices.

Car manufacturers have already told their distributors across the country to gear up for an increase in prices, which will be applicable from the date of announcement of the hike.

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