Home » Articles
Everything you want to know about cars at a glance. Articles that cover what is hot and what is not! Read exciting happening in the Indian and Global Car industry, tips to help you and more...
Old Articles
Car prices may go up in future
Many car manufacturers have found their own way of wooing buyers and encouraging them to buy their cars. Decent offers, good discounts and freebies are being offered to the buyers as incentive to increase the sale of their vehicles. Even car makers are quick to pass on benefits of excise duty cut on small cars as a result the price of small cars like Hyundai i10, Maruti Swift, Maruti 800, Getz Prime, came down drastically giving more scope for common man to buy car at affordable cost.
But it seems that such enthuse and generosity of car manufacturers may not last for a long time and would wither away shortly as car manufacturers have been under tremendous pressure to consider for hiking the price of their cars as the prices of steels and raw materials used to manufacture cars ranging from small car to wagon are likely to go up in next few months.
The threat of hike in the price of cars in days to come is looming large over the auto industry. Situation has become so tricky that no one is sure that today’s price will exist till another six months. Spiraling raw material prices are forcing car manufacturers to contemplate a price hike as soon as June or July.
Though car manufacturers have no clear idea about exact quantum of increase or hike that come into effect, industry analysts and top executives from the auto industry hinted that the hike could be around 3-5 per cent.
The auto industry is dogged by rise in the price of key input costs of steel, alloys, crude oil, copper aluminum and other raw materials which are essential to make a car. Due to sharp rise in the price of these materials, is affecting operating margin of car manufacturers in the current quarter.
The prices of alloy steel have gone up by 8-12 per cent (nearly Rs 7,000 a ton), while aluminum has become costlier by 18 per cent to $2,842 a ton (Rs 113,680). Copper too has gone up to a record high of $8,890 a tonne (Rs 355,600), an increase of 31 per cent.
As per the survey conducted by auto experts in the industry made it clear that a 10 percent increase in the steel price may result in 2to 3 percent rise in the overall cost of a small car.
Car manufacturers like Maruti, Hyundai, Tata Motor, Toyota, Honda and many others have not denied the possibilities of rise in the price of small or luxury cars in next few months following the hike in steel price.
Situation is expected to get worse in coming months as metal players expect a surge of around 15-65 per cent in prices of steel, iron, coking coal and other raw materials.
It’s right time for people to bring their favorite small car, luxury car or SUV to home. The present situation is indicating that waiting means loosing more money out of their wallet on our favorite cars. A wait and watch approach may prove too costly for those who are willing to see more reduction in price of cars in days to come. Don’t’ wait and drive home your favorite car which is on sale for a reasonable price in the market today.
© Copyright 2006-2008 Logix Microsystems Ltd. All Rights Reserved. Best viewed at 1024x768 resolution.
