Auto News

Rupee fall impacts the automobile sector

By   |   23 August,2013

The rupee seems to be fighting a losing battle with the dollar and that has affected a lot. For the auto industry in general this is no good news in a year that has not been great in the first place. The slowdown of the industry has made many car-makers swallow this situation and not have a hike in prices.

It is quite easy to fathom why the car-makers are worried about this situation and the reason is the rise of input costs. Many car-makers use imported components and this situation will only increase the prices and that means the increase will have to be passed down to the customer in form of a price increase. Yet another effect will be on paying royalty to the parent companies as in this case it will be a bigger amount now.

Of course the bright side is for those companies who export but overall this situation only rubs salt into the wounds of the car-makers.

Related Content