Indian Autos blog

Thursday, April 17, 2008

Car prices set to increase in the coming days following high input costs

Sheet metal prices, cost of plastic and rubber have all risen, some by upto a whopping 20%. The input costs are climbing leaving automakers with tough calls to make.

As a result of all this chaos, car prices are set to increase 2-3% in the next few days. Premium cars will cost anywhere between Rs 14,000-16,000 more and entry-level cars will cost Rs 4,000-6,000 more. Small car prices were reduced by up to 4%, due to the excise benefits that the budget had to offer. But with this news, expect the prices to climb and reach the level they were a couple of months back.

Even a slight rise in prices results in unrest amongst car buyers. Maruti knows that well and is devising a price strategy to reduce the burden on the customers. Honda said it will study the
commodity prices as well as the currency rate fluctuations in the international market before it announces the increase in price on its models.

If you are seriously planning on buying a car, then you should probably rush up and jump to a conclusion on which car you want to buy. The price increase may come any moment and there wouldn't be a point in paying a minimum of 5 grand extra for the same car next week which you are sure of buying now.

News source: Economic Times