Depreciating rupee can make car prices dearer. Auto companies are open to price raise on all range of vehicles, as rupee kept sliding in recent times. Sandeep Singh, Deputy Managing Director and COO (Marketing and Commercial), Toyota Kirloskar Motors (TKM), told PTI: "We will wait and watch for some time and will review our car prices at the end of the month. If this slide continues, we will be forced to increase the prices." He also added further fall in rupee will hit hard Toyota Kirloskar Motors, as 50 percent of the vehicles parts are imported.
Auto majors have increased auto prices marginally in the month of April and May 2013. GM India Vice-President P Balendran expressed, the company had recently hike car prices and has no plans to increase immediately with falling rupee value, “But we will keep evaluating impact and review again." Honda India too increased prices of its various models with effect from 1st April, 2013.
With weakening demand and lacklustre auto industry performance, Hyundai has no plans to increase car prices. The falling rupee value against the dollar is far from good news for the Indian auto industry. On 20th June, the rupee had fallen all-time low at Rs. 59.93 against the US dollar.