Car cos including Volkswagen, Hyundai and Maruti give a miss to price hike

Modified On Jan 16, 2012 07:22 PM By Vikas

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This might sound as the happiest news for the car fanatics in last 15 years! The big champions of the Indian car market, like Maruti Suzuki, Volkswagen and Hyundai Motors have decided to give a miss to the habitual price hikes in January 2012. This has happened because of the dipping sales and falling demand thereby giving a golden opportunity to the consumers to buy new cars at last year’s prices.

Maruti Ertiga

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According to the statistics, about 2.18 lakh units were sold in the month of September 2011, whereas these figures fell to 1.59 lakh in December 2011. This fall in sales was despite of the fact that companies and dealers were offering huge amount of freebies and discounts. On the other hand, the constant rise in the input cost and the irregular rupee depreciation in last couple of months added massive pressure on the companies that reduced their profit margin substantially. Any more hike without a doubt will drive the consumers away thereby leaving a dull global market situation.

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The managing executive officer of marketing and sales of Maruti Suzuki India, Mr. Mayank Pareek mentioned that there would be a little rise in price of the cars in near future but the final decision is still on hold. Even Toyota Kirloskar Motors is waiting holding off its final decision on price rise. According to the senior executive of Toyota Kirloskar Motors, the change in price could be done in next couple of days. In December last year, the car manufacturers announced a major price rise of up to a whopping Rs. 1 lakh which was to be applicable from 1st of January 2012. This was done to push the sales in the year end, but it failed miserably. The car companies are obviously under pressure. The major problem for the car makers is actually an opportunity for the aspiring buyers as car pundits predict intensified discounts will continue this year as well.

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Vikas

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