Car Prices in India Touch the Skies

With the prices of raw materials going high, car makers seem to have decided to pass on the pressure to the consumer as well. India has seen over four car price hikes this year and the trend seems to be continuing. There is no stop. This article contains a note on the new car prices in India as they touch the skies.

There were already a series of price hikes earlier during the year. The newly implemented BS IV emission norms in 13 major cities India and BS III norms in the remaining cities had triggered the hikes. Car makers in the country were forced to develop advanced engines that would comply by the new BS IV norms, and that certainly involved a lot of investment. Many models like the iconic Maruti 800 had to move out of the 13 cities in India where the BS IV norms were implemented.

Post implementation of those norms, the cost of raw materials required to build cars went high. When the Union Budget results were announced, car makers in India decided to hike prices once again as the costs of steel and rubber shot up. However, a few car makers in the Indian territory continued selling cars at the same prices. It now looks like that is no longer possible. Auto manufacturers will have to increase prices.

Maruti Suzuki increased the prices of all its models except the Alto on the 1st of August, 2010 by around 1.5 per cent. The prices were increased by Rs. 7500. The rising input costs were blamed upon. Following suit is Hyundai and Toyota. The two auto makers have made up their minds to increase the costs of their models as well.

On the 1st of September, 2010, Hyundai increases its prices. The two small cars from its stable, the Hyundai i10 and Hyundai Santro have been working miracles for the auto manufacturer. Now, Hyundai increases the prices of these two cars by Rs. 3,500. It is yet to be analysed if India accepts the high prices of the entry-level cars. The high-end variants may carry even higher price tags.

Apart from the i20 and Santro, Hyundai has increased the price of the Sonata by Rs. 10,000. Hyundai believes that it has done as much as it could to absorb the surging commodity prices, but can bear no more. It has finally decided to pass on some of the cost to the car buyers.

Meanwhile, Toyota's Indian arm, Toyota Kirloskar Motors, is also on the verge of increasing prices for the very same reason. India will witness the surge in Toyota car prices in October 2010. The Japanese car maker, as of today, sells the Corolla Altis, Innova and Fortuner in India. These are the cars that are built in India itself; built in Bangalore in the state of Karnataka in India to be precise. In addition, Toyota Kirloskar Motors also imports the luxury sedan Camry and premium SUV Prado.

Article Source: EzineArticles.com