Government gets tough on car prices

By Staff

Published: Monday, April 6, 2009, 14:33 [IST]

It is a well known fact that the government had approved a stimulus plan for the automobile industry in December 2008. It is also a well known fact that the price of most cars was hiked. Most of the best selling cars like the Swift, A Star, Santro, i10, Accent, Spark and Corolla were made dearer by anything between Rs.3000 and Rs.50000. Now the government has questioned the Society of Indian Automobile Manufacturers to justify the price hike.

The government condemns the auto majors saying that increasing the price goes against the spirit of the stimulus package. The companies maintain that they suffered huge input costs when there was no demand and after stabilizing they are transferring some of the damage to the customers. The finance ministry would not have any of it and so has asked all the companies to cut down prices to the usual ranges. According to the government other sectors in the industry like two wheelers, three wheelers and commercial sectors too suffered the increased input cost but have not raised their prices.

Article Published On: Friday, April 3, 2009, 17:23 [IST]

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