Cars and TV likely to see price hike
Posted on: 25/Jul/2018 6:31:53 PM
With the latest GST cut imposed and fall in rupee value, it is likely that prices of cars and TV will go up. The increasing interest rates in the US and prevailing uncertainty in trade war have sharply strengthened dollars in the recent months and brought rupee to a dip of Rs 69.1. This is now among the poor Asian currencies as of now. The situations may prevail further as well. This will make imports a bit costlier and increase price for the domestic manufacturers. The impact is clearly seen. The prices may see a revision, says senior director of marketing and sales of Maruthi Suzuki.
In spite of several localization being made in a number of its products, there is concrete exposure to foreign currencies as well due to their own purchases and those made by their vendors. Parts that come from abroad include internal parts, ECUs, engine, electrical parts and transmission parts. There is also major impact caused by the other variables like payment done for the royalty.
Toyota, in its statement says it is likely to make developments with rupees.
If this trend keeps continuing, the prices may have to be revised and the next revision in rate contract with suppliers will have to be done.
Concerns have also raised among luxury car makers. The trend is being cautiously watched, says Roland Folger, the MD and CEO of Mercedes Benz India. he adds that currency has got a ripple effect due to soaring import cost, increased inflation, dip in investment, etc. that altogether add burden to companies, customers as well as the government. Folger however did not quote anything on immediate price hike.
