2015 will be unlucky for you if you are planning to buy a Maruti, Toyota, Honda and Hyundai car. These manufacturers are planning to hike their prices in January 2015 owing to rise in material cost and high discounts offered on festive seasons. In the competitive mode of selling more units, the companies have given deep discounts to attract customers. For this reason the automaker is forced to hike the prices. Tata Motors and Mahindra & Mahindra have already hiked their prices.
Maruti Suzuki had made history by keeping the prices unchanged for 14 months and is now in the process to increase them, so are Honda, Volkwagen, Ford and Toyota. Hyundai has announced the increases on Monday. Vice president for marketing and sales, Hyundai Motor India, Rakesh Shrivastav said that due to high import of steel and other alloys and weak rupee rate against dollar has forced the company to increase the prices. He further added that they have taken such step despite of sluggish market conditions. Hyundai may raise the prices from Rs 5,000 to 25,000. Mr. Shrivastav also blamed direct cash discount offered on festive season to further the company’s sale for the price hike.
Manufacturers have seen an overall growth of 2.68% during 2014. The only reason why the companies had not increased the prices in 2014 was because of the 4- 6 % cut in the excise duty which is valid till December 2014. If such excise duty cuts are not practiced by the government in 2015, which the auto industry is currently demanding, then the prices would still go higher from Rs 25,000 to as much as 5 lakh for the luxury imports. The price hikes will surely have an adverse effect on the operation of the automotive sector. If the prices are not changed, then the companies would have to cut the production and this would lead to job losses.