With the Rupee depreciating, the cost of the raw materials is bound to rise. Thus, it shouldn’t come as a surprise if the automakers increase the prices of their products. Bajaj Auto, is already in the same lines and has announced a possible price increase of its products. The company has quoted high input costs. The motorcycle industry is already a localized market. The companies import certain parts only when they see a cost advantage.
“Definitely we are seeing a pressure on raw materials, because raw materials are usually corrected to the dollar rate. Some cost increases or price increases may be around the corner,” K Srinivas, President, Bajaj Auto, said.
Bajaj Auto recently launched the Pulsar 200 NS in Delhi and is expected to launch its latest and flagship motorcycle in other cities in the country as well. The Pulsar 200 NS will most likely not see a price hike. It is expected that most of two and four-wheeler companies will move towards a small price hike as the dollar depreciation has hit them hard. However some companies have chosen not to hike prices as the market sentiment is already low. These companies are offsetting loses by increasing export activities.
