Rupee fall: Car makers may hike prices

Hit hard by rupee depreciation, automobile companies including Toyota and General Motors, are keeping options open to increase prices of their vehicles.

"We will wait and watch for some time and will review our car prices at the end of the month. If this slide continues, we will be forced to increase the prices," Sandeep Singh,

Deputy Managing Director and COO (Marketing and Commercial), Toyota Kirloskar Motors (TKM), told PTI.

He said the fall in rupee will have an adverse impact as TKM imports around 50 per cent of the parts.

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General Motors India Vice-President P Balendran said that the company had hiked prices in first week of June and there was no plan for an immediate increase again. "But we will keep evaluating impact and review again," he added.

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Honda Cars India Ltd (HCIL) said the company had hiked prices of its various models, including City, Brio and Accord with effect from April 1.

"We have also increased prices of Amaze and CRV with effect from June 1. Currently, we are trying to hold the prices and will wait and watch before taking any further hike," a company spokesperson said.

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Maruti Suzuki India officials said the company is still undecided on hiking the prices.

A Hyundai spokesperson said the company is not currently considering any price hike of its cars considering the current slowdown in the auto industry.

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The rupee has been continuously losing ground against the dollar and sunk by 90 paise to an all-time closing low of 58.77 on Tuesday on massive dollar buying by banks and importers.

Erasing early losses, rupee today ended 7 paise higher at 58.70, its first gain in three days, on recovery in local stocks and fresh dollar selling by exporters ahead of the outcome of US Fed policy meet.