Cars to get costly from April 1, 2014

Updated: Monday, March 31, 2014, 11:39 [IST]

After cutting down on car prices by almost 4-6% following lowering of excise duty, manufacturers in the segment are again set to increase the price to capitalize on an increase in demand during the auspicious season of Navratras. The hike will set in with the start of the new financial year i.e. April 1, 2014. Also, with an increase in car price, car manufacturer assume to recover for the higher cost and for it new car buyers will have to pay an higher amount by 1-2%.

As reported in one of the business dailies, car companies even after following and adopting a high discounting failed to increase its sales volume. Correspondingly, as propounded by experts any more discounting does makes no sense. And as suggested, even if the sales volume scale down on account of the hike in price, net profit shall be higher for the industry.

In respect of the benefit in the wake of appreciating rupee that shall accrue to the industry, the real benefit shall be realized only at a later time. The Indian auto industry has been witnessing slow growth phase for more than two years now. But going ahead, analysts and experts view improvement in sales volume.

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