German carmaker Volkswagen has announced a price hike of two percent across its range in the country. Increased prices will be effective from January, 2014. After the price increment in January'13, this is the second time when Volkswagen has increased car prices in India.
Arvind Saxena, Managing Director, Volkswagen Passenger Cars, commenting on this price increase said, "We have been faced with constant rise in input cost over the past several months and have tried our best to absorb it. However, in order to maintain our quality standards that our customer expects from us, we have had to increase the price by a small percentage."
Before Volskwagen, Tata, Hyundai and Honda also announced a price hike with effect from January. Increasing input costs, depreciation in the value of rupee and above all, lack of demands have been the common factors behind these price hikes.