Again a price hike!
Auto manufacturers- Mahindra and Mahindra, Tata Motors and Honda Cars India Ltd. (HCIL) are set to increase prices of their cars from April 2014. This is the third instance of increments this year and the decision is backed by the rising input and operational costs plus squeezing margins.
A report from ET confirms that the manufacturers might raise the prices of their offerings from the coming April, in order to compensate the increased costs of manufacturing. "As we enter into a new fiscal year, we are closely looking at the cost pressures," said Mayank Pareek, chief operating officer for marketing and sales at Maruti Suzuki India.
While Mahindra and Honda have confirmed the price news, the Tata Motors might start with an increase in the prices of their cars, followed by the commercial vehicles range.
Pravin Shah, Mahindra & Mahindra Chief Executive (Automotive Division), while confirming to PTI, said, "We are actively contemplating increasing the prices of our vehicles in April due to increase in input and operational costs. We have not yet taken a final decision on the quantum and timing but this a matter we are seriously considering right now. It will happen for sure in April."
Recently, manufacturers reduced prices of their products due to the excise duty cut, which ultimately helped car sales to rise by a slight margin. But now this increment might disturb the interests of many prospective buyers.