Click it and Unblock the Notifications
Prices Of Cars, Motorcycles To Hike Again
Big car companies like Maruti and Hyundai have received a jolt in their profit due to the in put costs. Maruti"s CGM for sales and marketing hinted that the company would have no option than pass the increase to the customers. This would result with the increase upto Rs 6000 for entry level cars priced at Rs3 lakhs. Recently the car manufacturers hiked the prices by 1-2% to compensate the input costs.
The VP for marketing and sales and CEO of Hero Honda (motorcycles company)said any such increase in the excise from the budget will have an adverse effect on the market position. They are very particular of retaining the present duty structure to secure profit. They cautioned that two wheeler (motorcycles) has more sensitive response to the price rise. The 4% concession on excise duty was offered by the government to ease the recession effect some two years ago.
This yielded good result in the economy revival and the rapid growth of the auto industry worldwide. In the last budget, the government reduced the extension by 2% and the growth has been still consistent. Based on this, the auto industry feels that the government would go back to its earlier stance of 4% duty. But what the industry feels is that the companies are already on red cards to earn due to profit due to higher input costs and fuel prices. The Head of SIAM and the President of Mahindra Automotive said the increase in duty is certain to be passed to the market and the companies could not bear. Both he and the marketing head of Honda Siel said the increase in duty will result with the increase in the prices of products.
Continue with Google