Indian rupee has been on a decline and it is sharply going down to every American dollar! Almost all imports are getting dearer since manufacturers have to pay more for the same product.
Auto majors are also facing the heat. After luxury manufacturers announcing price hike, Skoda has joined the bandwagon and will be increasing prices of its cars next month. The price hike will be across the range including all cars, however, the quantum of increase is not known right now.
The reason cited is the depreciation of Indian Rupee by almost 10% versus the US Dollar since the start of this year. This has led to high raw material costs which in turn causes a dent on the company’s profits. Skoda sells Fabia, Rapid, Laura, Yeti and Superb in India.
The company is also planning to launch the New Octavia A7 in India shortly which will replace the existing Laura and will mark the comeback of the ‘Octavia’ brand in India.
With the continuous fall of Rupee it is just a matter of time when other manufacturers feel the pinch and announce a price increase.