Despite double-digit growth in sales in the third quarter of the current fiscal, automakers’ operating profits and margins will likely remain subdued in the next quarter and in FY22, as companies may find it difficult to offset the impact of rise in commodities and other costs
NEW DELHI: Nissan Motor India Ltd will raise product prices across categories from April due to substantial increase in global prices of commodities like steel, copper and crude oil.
"There has been continuous escalation in auto component prices, and we have tried to absorb this escalation over the last few months. We are now constrained to increase our prices across all Nissan & Datsun models, the increase varies from variant to variant, while still offering the best value proposition to its discerning Indian customers." said Rakesh Srivastava, managing director, Nissan Motor India Pvt Ltd.
The local unit of Japan's Nissan Motor Co though did not specify the quantum of price hike.
On Tuesday, market leader, Maruti Suzuki India Ltd announced its decision to raise prices next month. Other car makers are also expected follow suit.
Nissan had launched the Magnite, its first compact sport utility vehicle, earlier this year to revive the fortunes of the company. It has garnered 40,000 bookings.
Buoyed by the initial customer reaction to its new compact sports utility vehicle, Magnite, Nissan has decided ramp up production and recruit around 1,000 new temporary workers to start a new shift at its Tamil Nadu-based manufacturing plant. The company has also asked dealers to hire more sales and service executives at showrooms.
Meanwhile, sector analysts believe that despite a double-digit growth in sales in the third quarter of the current fiscal, automakers’ operating profits and margins will likely remain subdued in the next quarter and in FY22, as companies may find it difficult to offset the impact of rise in commodities and other costs.