MUMBAI (Commodity Online): Despite the fall in sales of vehicles in India, the price of the cars are likely to cruise high to offset the impact of weakening of rupee against the dollar.
The import cost of the car parts became costlier due to weakening of rupee. The major car brands like Maruti, GM, Honda among others plans to increase the price of the cars upto Rs 25,000.
The decision was came after rupee hitting the all time low Rs 52.73 last week. The INR has fell 17% since January.
The small cars would be priced higher by Rs 10,000 and the sedan editions will be priced higher by Rs 25,000.
According to the data released by the Society of Indian Automobile Manufacturers (SIAM), the domestic car sales fell 23.77% to 138,521 units in October 2011 against 181,704 units in the same month last year.
"We will have to pass on the cost to customers to offset the rising impact of depreciating rupee and the rising cost of making diesel cars that are currently selling like hot cakes," The Economic Times quoting a senior Maruti Suzuki reported.
The luxury car brands are planning to increase the cost of their model by Rs 50,000.
According to experts, raising the car price in the midst of economic global crisis and rising fuel costs is expected to hit the industry drastically.
