Tuesday, 22 November 2011

General Motors and Toyota to Increase prices of cars hit by falling rupee, other may follow

Auto Companies in India are hit by the falling Rupee. Toyota Kirloskar Motors and General Motors were due for the review of price in January 2012 but owing to steep fall in Rupee the companies will review the prices very soon and may increase the prices of the cars from 1.5% to 3%.

Maruti's Chairman Mr. RC Bharagava too said in the morning that we have badly been hit by the falling rupee and thus may review the prices of petrol version of our cars soon. The company had recently increased the prices of Diesel Cars by Rs 2,000 to Rs 10,000.

"We import lots of parts and the rupee depreciation is impacting us. We were planning to review prices in January but due to the currency fluctuation we may have to do it soon," General Motors India Vice-President P Balendran told media.

Expressing similar views, Toyota Kirloskar Motor Deputy Managing Director (Marketing) Sandeep Singh said the present currency fluctuation is affecting the company severely. "It is a double whammy for us. On one hand, yen is appreciating, while on the other hand rupee is depreciating. Our margins are getting impacted," he added.

In October, car sales in India registered their steepest monthly decline in nearly 11 years, tanking 23.77 per cent on account of a huge drop in output by the country's largest car-maker MSI due to labour trouble, coupled with high interest rates and rising fuel prices.


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