French auto-major Renault plans to increase prices of its automobiles in India by up to 1.5 per cent with effect from January 1, 2013 because of high input costs.
"We have to follow suit with the rest of the industry as input costs have gone up tremendously. . . we are forced to pass on some of the burden to our customers as high input cost, coupled with high inflation are all eating into our bottom line," Renault India executive director (sales and marketing) Sumit Sawhney said.
"The price increase will be up to 1.5 per cent across the range and will be effective from January one, 2013,"
Renault India currently has 75 dealerships across the country.
The company plans to increase it to 100 by the end of this financial year.
Renault along with Japan-headquartered auto-maker Nissan has a manufacturing facility at Oragadam near Chennai, set up at a cost of Rs 4,500 crore (Rs 45 billion).
The plant has a total capacity of producing 400,000 units per annum.
Renault India, subsidiary of Renault s.a.s, France retails premium hatchback Pulse, mid-size sedan Scala, SUV-Duster, premium sedan Fluence and premium SUV Koleos.