Toyota, GM mulling car price hike in June. Depreciating rupee is to blame
The depreciating rupee has shaken the auto industry in India. Most car makers in India depend on imports coming in from other countries in the South-East Asian region. Japanese companies like Honda and Toyota import parts from Thailand while other car makers follow a similar strategy. Now, with rupee crossing its all time low against the US dollar, car manufacturers in the country are mulling a price hike to counter the losses incurred on their imports.
What could be described as a nightmare scenario for motorists in the country, some suggest that the worst is yet to come. The constant revisions in the price of fuel and the ever depreciating value of the rupee has left the common man in a difficult position. Same is the case with the car makers who are feeling the heat for the past couple of months. Thus, they are left with no option but to increase the price of their products. Toyota is expected to hike their prices from June 1st and so has General Motors, but haven’t yet decided on the quantum of hike.