The Indian automotive industry is set to hike prices by 2-10 per cent in the first quarter of the next financial year following rise in input costs and fall in rupee, a study by industry body Associated Chambers of Commerce and Industry of India said on Wednesday.
Assocham interacted with 50 auto experts including former chairmen of various leading automobile manufacturers, dealers, auto parts traders and analysts. The survey was conducted in Ahmedabad, Bangalore, Delhi, Mumbai and Pune.
Rising interest rates, steep increase in input costs, unregulated price hike of raw material, sudden depreciation of rupee and labor pangs have affected the industry, said DS Rawat, secretary general of Assocham that released the report 'Indian Auto Industry: The Year Ahead'. Respondents opined that the industry is likely to reel under costs pressure unless the situation improves globally. More than 50% of those who took part in the survey said, profit margins of the industry might shrink further amid negative consumer sentiments due to soaring fuel prices and inflation.
Ten respondents were optimistic of the automobile industry growth on the back of sound fundamentals of Indian economy and hoped for improved industrial growth in the months to come. Those interviewed expressed shock over the sudden decline in India's industrial production.