It will be an expensive start to the year for car buyers in 2013 with automobile companies, led by Maruti Suzuki India, deciding to raise prices of vehicles, and others considering a similar move.
While Maruti Suzuki India (MSI) said it would increase prices by up to Rs 20,000, Toyota Kirloskar Motor said it would also raise prices one-two per cent across all models. Other companies, Honda Cars India and Volkswagen India, said they were also contemplating such a move, but the details are still being worked out.
The companies said increasing pressure on their margins due to currency fluctuation necessitated the move.
"There will be a rise in the prices of our products. Quantum will vary depending on models, but it can be up to Rs 20,000," Maruti Suzuki India Chief Operating Officer (marketing & sales) Mayank Pareek said.
The company sells various models, from the M800 to the imported Kizashi, starting at Rs 2.09 lakh to Rs 17.52 lakh (ex-showroom Delhi).
Toyota Kirloskar Motor (TKM) said it would increase prices across its models from January 1. The rise would be one-two per cent across all models, a TKM spokesperson said.
TKM sells a range of vehicles, from hatchback Etios Liva, with price starting at Rs 4.44 lakh, to the imported sports utility vehicle Land Cruiser, tagged at Rs 99.27 lakh (ex-showroom Delhi).
Honda Cars India also said it was considering price rises but details were yet to be finalised.
Similarly, a spokesperson for Volkswagen Group Sales India said: "With increasing pressure on input costs and exchange rates, Volkswagen was considering a price rise."