Car companies and two-wheeler companies have been raising prices despite the negative demand for eight consecutive months, the demand for retail is increasing.
Companies say that the increase in duties on the imported parts announced in the Union Budget is necessary to increase the cost pressures and cost recovery at the expense of new security rules.
There is an increase in time when discount on certain models is high. For example, a large SUV is sold as a Honda CRV with a consumer offering of 2.5 lakhs, while the Toyota Corolla sedan can be purchased with a rudder of 1.6 lakhs.
Hyundai Motor India, the country’s second largest automaker, will increase prices by Rs. 9,200 on August 1. This increase will be effective in 10 models including Santro and Venue.
Hyundai’s domestic sales fell 7.3 percent to 42,000 units from the same month last year. In May, the domestic volume fell to six percent in April with a decline of 10 percent.
The continuous decline in sales comes despite the addition of new models for lineup like Santro and Venue. Electric SUV corner can survive till now.
TVS Motor increased prices
China’s TVS Motor Company, India’s fourth largest automobile maker, has so far raised prices twice. With the fall of 4 percent in May, despite the decline in domestic trade volume in June, despite an 8 percent decline.
TVS Motor Company Chairman and Chief Executive Officer KN Radhakrishnan said: “Our prices have increased by 0.1 percent in the first quarter, and in July, we have increased some prices, so it will be 0.3 percent.
In Mumbai, Hero MotoCorp said that the prices are expected to increase in the coming days. The company had increased prices by one percentage point earlier this month.
Bajaj Auto did not respond to questions.
The same thing applies to Mercedes-Benz
The luxury car industry is the most difficult due to the downturn, but it has not seen the high prices of office officials.
Mercedes-Benz, India’s largest luxury car maker, has decided to raise prices of three percent on a selected group by the first week of August.
E-Class and ML-Class announced a decline of 19% in volume during the January-June period of 6,561 units compared to 8,061 units in the same period last year.
As of July 1st, all vehicles will be equipped with standard remodeling seat belt, driver and rear parking sensor for side airbag, speed warning system, front passenger.
By 1 October, all vehicles will have to undergo a collision test, which includes full frontal, displacement and side effects, which make them eligible for the road. All these rules will increase the final cost of the vehicle. Other manufacturers are expected to follow the suit soon.
In addition, India is a beginning for the emission standards in phase VI, which is scheduled to start from April 1, 2020. This will also increase the prices, which will result in increased pressure on retail demand.
This unfavorable wind maintained sales in the second half of fiscal year 19.
From January to February, the level of inventory increased by 70-80 days.
Therefore, the sharp fall in March sales, indicates the reductions in production and transmission to rationalize inventory levels.
Car companies still see the possibility of darkness. According to the report of IIFL Holdings Limited, “Our investigation with the original dealers and manufacturers shows that the industry-wide final demand, which is weakening in the middle of the financial year 19, is still in progress. The plans do not help in improving the volume. ”
Regardless of the demand, such as good monsoon and festive season like positive monsoon, but there are other challenges too.
The prices of ABS and ABS will increase. Merchants are cautious about the approach for sales, as customers have already seen prices increase by 10-15% between 2017 and 2018.
This industry should also face new standards for BS-VI emissions, which is effective from April 2021. This will again see the need for the BS-IV IV inventory survey.