We have been informed that Skoda Auto India plans to initiate a price increase across its entire product range. The new prices will be effective from August 2013. The company is holding fast depreciating Indian rupee responsible for the upcoming price hike. It may be noted that Indian Rupee has depreciated by almost 10% against the US Dollar since the beginning of this year. This has lead to high raw material costs at the manufacturer’s end.
Skoda Auto India will announce the revised prices for all its models next month. We believe that the price rise would be marginal and would amount to 1-1.5%, depending on the model. It may be noted that while Skoda Auto India, the Indian subsidiary of VW Group Czech automaker assembles its cars in India, most of Skoda India cars on sale use a considerable amount of imported components. For instance, the entire engine and gearbox are imported to India.
With Indian rupee continuing to head south, we won’t be too surprised to see other car makers following suit.
Stay tuned to Motoroids for more info on this.