Cars to get Pricey with New Year?

[350Z]

Carmaker Fiat India Automobiles today said it will consider raising prices of its products as the margins are under pressure.

"There are no margins left ... We may look at revising our prices upward," Fiat India Automobiles President Rajeev Kapoor told reporters on the sidelines of the SAIM annual convention in New Delhi.

The company expects sales to cross 27,000 units this year on the back of newly launched small car Grande Punto and sedan Linea.
Kapoor also said the company would start exporting Linea to South Africa from September this year.

Fiat India Automobiles - the 50:50 joint venture between Italy's Fiat and Tata Motors, has recently arranged Rs 2,500 crore (Rs 25 billion) financing for completing the construction of its manufacturing facility at Chakan.
Fiat had announced Rs 4,000 crore (Rs 40 billion) investment in India operations.

Source: Rediff Business

 

[Zinam]

Okay! i can agree that the cars from FIAT is marginally priced when compared to their specs & style.

But FIAT should think of starting its own brand instead of an JV & i really dont like JV with TATA because of their worst A.S.S

 

[vijay]

Okay! i can agree that the cars from FIAT is marginally priced when compared to their specs & style.

But FIAT should think of starting its own brand instead of an JV & i really dont like JV with TATA because of their worst A.S.S

many are looking forward to buy fiat once they start their own brand, services and sales rather then JV with tata as their good products doesnt appeal to many with me one of them cause of their pathetic ASS and after sales response.
Also yes this is confirm that we might see a price raise for Linea as well as Grande Punto in coming days which i believe if gets more then 10K, would be difficult for fiat to compete with other players, their key was its pricing.

 

[vroom]

Oh. This is not good news for me, if I am planning to decide on buying a Punto . Hopefully, this decision will be taken somewhere mid next year till when the car sales would have stabilized.

 

[RSM]

I think it was just a rumor.
I don't think there will be any hike at least till next year.

 

[anuprav]

No price hike from fiat at present

 

[RSM]

Today ,Times Of India, bangalore edition, had below ad -

 

[Shynish M]

I think they won't do this immediately. May be down the line, with a face lift / upgrade !!!

@vroom - we are in the same club, I am planning for Punto in Jan 10

 

[vijay]

wait till diwali ends and surely fiat plans to hike pricing for its cars, hope they dont do these.

 

[Arun]

No price hikes will take place guys. It is just too early!
@ Shynish : Don't even think of a new car in January! You'll get a previous year model which will reduce the price of the car on selling.

 

[Shynish M]

Oh ! yes. you are correct. I will start a separate thread for discussion over my requirement soon.

 

[350Z]

It is time for car makers in India to book profits and patch up their losses made in 2008 or early 2009. The rising market and better purchasing parity has come in just at the time when new stricter emission norms are coming into force. Moreover, inputs costs have been soaring since a long time and auto manufacturers have been having a hard time trying to keep the costs down and cutting down their margins.

Car prices in India are slated for a two-phase hike in India. Every automobile manufacturer has to switch their models to newer technology to keep up with the new emission norms coming into effect from April 2010. Prices of Honda Civic, Mahindra Scorpio and Maruti Swift will get expensive at least by Rs. 10,000- 20,000.

Maruti Suzuki is in the process of negotiating its contracts with its suppliers as the material costs have gone expensive at least by 5-7 percent. The price will eventually affect the end product in the market even though the company tries to absorb the rising costs. “We are currently negotiating prices and final negotiations are yet to be concluded,” said S Maitra, Maruti’s managing executive officer (supply chain).

The current rising markets have given some encouragement to car makers to pass on the price hike to the customers. “Steel and other major metal suppliers are pressing for price increase from for some time. We’ll try to absorb it but some may have to be passed on to the customers,” said Pawan Goenka, head of the automotive division at Mahindra & Mahindra.

According to new emission norms, new cars sold in 11 major cities will be as per the BS IV rules while in the rest of the country they will be according to the BS III norms. Switching to new technology asks for an investment of Rs. 5000 – 15000 in new vehicles including buses and trucks.

Source: CTI

Drive Safe,
350Z

 

[vroom]

Yes, I saw this article in TOI today too. Looks like there is a price increase across all cars from next year onwards.

Vroom

 

[RSM]

Even economictimes says this -

Prices of popular vehicles such as Mahindra Scorpio, Maruti Swift and Honda Civic may go up by Rs 10,000-20,000 within a month or so as the raw material prices have gone up by 10-15% and also the Japanese carmakers are concerned by the rise in yen valuation.

“We are facing pressures to increase prices to keep our profit margins in healthy territory,” said Pawan Goenka, head of the automotive division at Mahindra & Mahindra. “Steel and other major metal suppliers are pressing for price increase from for some time. We’ll try to absorb it but some may have to be passed on to the customers,” added Mr Goenka who is also president of the Society of Indian Automobile Manufacturers’ (SIAM).

 

[Crazy cat]

I pity Honda Civic. The other two cars won't be affected much by this price hike.