I think there is alwyas pick in sales during festive season.Peopel will definitely buy cars at this time.So companies what to take advantages of this. Further we all will see Hugh discounts in December and Jan.
I agree with your point in connection to festival session. But why increasing price and offer discounts are navratras ? It is confusing strategy by car companies. Well as far as December is concerned, people will surely get good discounts on Petrol cars.
I was just going through NDTV site & came across this piece of info, apparently Maruti is increasing the price of Swift, Swift Dezire & SX4 by 10k & for Ritz by 2k. More info can be found at the link: Price Hike by Maruti
Are we going to see a trend with other car makers with Diesel variants going for a hike as well? These days everyone is citing the fluctuations of the Market! What I fail to understand is where is all the Money going? Have the corporate's become so greedy that we have to start Occupy Wall Street & other demonstrations to get them down to Earth & look at the issues plaguing the Planet? sorry for going a bit OT here, but I feel its relevant to the topic?
A recent Crisil Research note said that because of frequent increases in fuel prices and interest rates, the cost of owning a car had risen by a steep 12-14 percent over the past 19 months. Petrol prices have jumped by 37 percent since the transport fuel’s prices were de-regulated in June 2010, while the central bank has raised rates 13 times since March 2010. Another petrol price hike will just remind potential car buyers why it was such a good idea not to make a purchase in the first place.
Maruti raises price of diesel cars by upto Rs 10000
The Country’s largest car maker Maruti Suzuki India has hiked prices of its diesel cars by up to Rs 10,000 with effect from today on account of higher input costs and appreciation of Japanese yen. The company has sent mails to its dealers across the country informing about a price hike on diesel versions of its compact cars Ritz and Swift and sedans DZiRE and SX4 between Rs 2,000 and Rs 10,000, sources said. When contacted a company official confirmed the development.
“MSI has raised prices of all its diesel cars with effect from today. In its mail to dealers, the company cited reasons of higher input costs and unfavourable yen appreciation,” a source said. The strengthening of yen has increased the cost of import of components from Japan. The company has hiked the price of the diesel variants Ritz by Rs 2,000, while that of Swift, SX4 and DZiRE have been raised by Rs 10,000 each. Before this hike, the diesel version of the Ritz was priced between Rs 4.93 lakh and Rs 5.29 lakh. Swift is priced at Rs 5.17 lakh-Rs 6.38 lakh range. While the DZiRE is priced at Rs 5.86 lakh-Rs 7.20 lakh, SX4 is available between Rs 7.79 lakh and Rs 9.01 lakh. All the above prices are for ex-showroom, Delhi.
Maruti, Honda, Toyota, GM cars could become dearer by up to Rs.25,000 due to weakening rupee
Car makers might hike prices by up to Rs.25,000. Hatchbacks could get dearer by as much as Rs.10,000 due to expensive imports. The weakening rupee has had an adverse effect on car makers like Maruti, Honda, Toyota and General Motors. Those automakers who depend on imports will bear the brunt of the Indian rupee losing out to the US dollar. Car makers are having to import components at a higher price. The rupee has lost out to the US dollar by as much as 17 percent since January, hitting an all time low of Rs 52.73 last week. Source - Maruti, Honda, Toyota, GM cars could become dearer by up to Rs.25,000 due to weakening rupee | IndianCarsBikes.in
Maruti sees "stress points", but may up car prices
(Reuters) - Maruti Suzuki (MRTI.NS), India's dominant carmaker, may raise prices early next year to counter rising import costs due to a weakened rupee even though the near-term demand outlook remains weak, officials said on Thursday.
Steep increases in interest rates, high fuel prices and slowing economic growth have dented car sales in India, the world's second-fastest growing market for vehicles, after a record 30 percent jump last year.
Maruti posted an 18.5 percent drop in November sales from a year earlier, but this was better than in October when sales had slumped by more than half mainly due to a labour strike.
"In the near term, there are stress points," Mayank Pareek, head of marketing and sales, told reporters. "In medium to long term, we are very bullish on the Indian market."
He said the company, 54.2 percent-owned by Japan's Suzuki Motor Corp (7269.T), may raise car prices after December as a slide sharp fall in the rupee has pushed up import costs.
Maruti had raised prices of its diesel cars in November.
"The declining rupee and the strengthening yen mean any yen-dominated import becomes costlier," Chairman R.C. Bhargava said, adding the Japanese yen had appreciated almost 28 percent against the rupee in a year.
The rupee shed 6.7 percent against the U.S. dollar in November, its worst fall in at least 16 years.
Bhargava also said Maruti expected its strike-hit Manesar plant in north India to run at full capacity by January, producing 800 cars a day, after a labour unrest this year cost it 83,000 cars or almost $500 million in lost output.
Maruti, which until last year sold nearly every other car in India, faces tough competition from global car makers such as Hyundai Motor Co (005380.KS), Ford Motor Co (F.N), General Motors Co (GM.N) and Honda Motor Co (7267.T) and has seen its market share slide to just over 40 percent.
The central bank has raised interest rates 13 times since early 2010 to control stubborn inflation and this has hit growth across sectors.
Economic growth in the September quarter fell to 6.9 percent, the weakest pace in more than two years, and a survey released on Thursday showed factory output in November grew at its slowest in nearly three years.
Maruti, may see a decline in sales volumes in the current fiscal year to March amid the weak market and as the company suffered heavy production losses due to a labour strike, Bhargava told Reuters last month.
Shares in Maruti, valued at $5.4 billion, were trading 0.8 percent down by 0949 GMT, in a Mumbai market that was up 2.3 percent. The shares are down nearly a third this year, underperforming a near-20 percent fall in the broader market.
See what I think that these hike is because many car brands are introducing their diesel and hybrid cars in the market therefore they are decreasing little bit of petrol price and increasing the cars price.
Rupee depreciation has put pressure on firms importing a substantial amount of components from overseas. The rupee has depreciated by over 15% in the last 3 months.
India's second-largest car-maker Hyundai Motor India will raise the prices of its vehicles by 1.5 to 2 per cent by January next year on account of high inflation and the weak rupee.
"The price increase will come into effect in January, 2012. We are in the process of working out the specific increase on the various models. Broadly, the increase will be 1.5 to 2 per cent across all models," Hyundai Motor India Director Marketing and Sales Arvind Saxena said.
He said rising inflation, higher fuel costs and sharp rupee depreciation compelled the company to look at a price increase.
"All these factors have now made it very difficult for us to absorb the rising costs," he added.
The company -- which offers its Eon, Santro, i10, i20, Accent and Verna models in the country -- reported a 28.15 per cent year-on-year jump in total sales in November, 2011, to 57,080 units.
General Motors has also decided to raise prices of its cars by 1-2 per cent by January next year for similar reasons.
Toyota Kirloskar Motor (TKM) has also announced a price hike across all models manufactured in India by about 3 per cent from January 1.
Rupee depreciation is putting pressure on firms importing a substantial amount of components from overseas. The rupee has depreciated by over 15 per cent in the last three months.
Other car-makers, including Maruti Suzuki India and Ford India, are also mulling a hike in prices of their products to offset the rising cost of component imports.