Price rise rocks automobile industry

New Delhi, Jan 22: There's a bad news for those who all are planning to buy a new car. All automobile firms including Maruti Suzuki India, Hyundai and General Motors have decided to increase the costs of their cars.

One of the biggest car manufacturers, Maruti Suzuki India declared that except their new small car Alto K10, the company will increase prices by up to Rs 8,000 across all models.

Maruti Suzuki India Managing Executive Officer (Marketing and Sales) Mayank Pareek stated, "Yes, we did increase the prices from Jan 17, ranging between 0.5 percent and 2.2 percent."

"Material costs amount to 80 percent of the cost of production of a car. Increase in input costs puts pressure on profitability. We have tried to absorb the rise in costs to the extent possible, but now we had to pass it on to the consumers," stated another spokesperson of the company.

Similarly, Hyundai Motor India Ltd (HMIL) also announced 1.5 percent increasing in its models, Santro, i10, i20 and sedan Verna from Jan 2011.

OneIndia News