The value of the rupee continues to slide compared to the US dollar and as this rings alarm bells for the economy of the country and those responsible to keep the growth on track, it is the automakers like Bajaj Auto who are feeling the heat as well. The cost of raw materials is at its peak which have forced automakers to rethink the pricing of their products.
Bajaj Auto could be planning a price hike very soon. We could also see other bike as well as car makers to follow suit. This was revealed by Bajaj Auto President, Motorcycle business, K Srinivas. "Definitely we are seeing a pressure on raw materials, because raw materials are usually corrected to the dollar rate. Some cost increases or price increases may be around the corner," he said.
That said, commuters have got some respite from the recent petrol price hike. Indian Oil Corporation has announced a cut in the petrol prices. On the whole, the Prime Minister is to introduce reforms in fuel pricing post the Presidential elections. While, another price cut could be on our way by next month.