Car prices set for 2-phase hike in 2010

Car prices set for 2-phase hike in 2010
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First Published: Tue, Nov 24 2009. 11 32 PM IST

 Wooing customers: A car showroom in New Delhi. Car makers are likely to offer hefty discounts towards the year-end, before raising prices. Ramesh Pathania / Mint
Wooing customers: A car showroom in New Delhi. Car makers are likely to offer hefty discounts towards the year-end, before raising prices. Ramesh Pathania / Mint
Updated: Tue, Nov 24 2009. 11 32 PM IST
Mumbai: If you are planning to buy a car, you may want to head for your dealer sooner than later.
Wooing customers: A car showroom in New Delhi. Car makers are likely to offer hefty discounts towards the year-end, before raising prices. Ramesh Pathania / Mint
That’s because car makers are expected to hike prices across the board in 2010 at least twice, people aware of the matter said on condition of anonymity.
The first round of hikes is slated for January, they said on condition of anonymity, while the second will come around April. But before these hikes are effected, car makers will go all out to woo consumers, offering hefty discounts towards the end of the year.
Experts said this is common practise among auto makers, What is a little unusual is that this time the price hikes could be as much as 5-10%, they said but declined to be named.
The second price hike, however, comes as a surprise.
The people said car makers would be forced to raise prices for the second time because the more expensive Euro IV pollution norms kicks in then.
Industry experts said auto companies are investing heavily in making engines compliant to these norms and these costs have to be passed on to consumers.
They say that these new engines will make cars costlier by Rs5,000-10,000. In some cases, they say, the price hike may be steeper, as the tweaking on the engines has been greater, and costlier.
cnbctv18@livemint.com
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First Published: Tue, Nov 24 2009. 11 32 PM IST