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Cars to be costlier next year on forex swings

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Press Trust Of India New Delhi
Last Updated : Jan 24 2013 | 2:10 AM IST

It will be an expensive start to the year for car buyers in 2013 with automobile companies, led by Maruti Suzuki India, deciding to raise prices of vehicles, and others considering a similar move.

While Maruti Suzuki India (MSI) said it would increase prices by up to Rs 20,000, Toyota Kirloskar Motor said it would also raise prices one-two per cent across all models. Other companies, Honda Cars India and Volkswagen India, said they were also contemplating such a move, but the details are still being worked out.

The companies said increasing pressure on their margins due to currency fluctuation necessitated the move.

"There will be a rise in the prices of our products. Quantum will vary depending on models, but it can be up to Rs 20,000," Maruti Suzuki India Chief Operating Officer (marketing & sales) Mayank Pareek said.

The company sells various models, from the M800 to the imported Kizashi, starting at Rs 2.09 lakh to Rs 17.52 lakh (ex-showroom Delhi).

Toyota Kirloskar Motor (TKM) said it would increase prices across its models from January 1. The rise would be one-two per cent across all models, a TKM spokesperson said.

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TKM sells a range of vehicles, from hatchback Etios Liva, with price starting at Rs 4.44 lakh, to the imported sports utility vehicle Land Cruiser, tagged at Rs 99.27 lakh (ex-showroom Delhi).

Honda Cars India also said it was considering price rises but details were yet to be finalised.

Similarly, a spokesperson for Volkswagen Group Sales India said: "With increasing pressure on input costs and exchange rates, Volkswagen was considering a price rise."

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First Published: Dec 07 2012 | 12:42 AM IST

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