| ipt type="text/javascript"> | | | | the price. I think all these company benefits for all |
| Two Days after market -leader Maruti Suzuki | | | | terms you no think increase the price how |
| India Ltd announced a price hike, Hyundai Motor | | | | effects the car market position. In order to realize |
| India Ltd âranked No.2-on Wednesday | | | | what price you might imagine to pay for your |
| said it would increase price all car models by 2% | | | | subsequently car, you must first appreciate how |
| .The new price will take effect in the first week | | | | new car pricing actually works. As you know, |
| of June. There has been an increase of various | | | | pricing is very essential whether you let out or |
| magnitudes across verity of our inputs like steel, | | | | buy. Dissimilar consumers can pay generally |
| copper, plastic and rubber. We have been | | | | different prices â for the same car, at |
| absorbing it for sometime now, but we have | | | | the similar dealer, on the same day â |
| decided to pass on some of it to consumers,"said | | | | depending on each one customer's knowledge of |
| Arvind Saxena, senior vice president at HMIL. | | | | how car pricing works. New car dealers anticipate |
| While steel producer have been demanding 30 per | | | | most customers to bargain price. Regrettably, |
| cent more for long-term contracts under | | | | negotiating is not easy. Buying a new car is more |
| negotiations with carmakers, aluminium prices | | | | like haggling for a donkey in market than buying a |
| have raised 25 pre cents since January 21. A | | | | refrigerator at Sears. Dealers are able to rapidly |
| typical car could contain up to 80 kilos of parts | | | | spot customers who don't have the knowledge to |
| made of aluminum, which costs up to Rs 10,000 | | | | bargain well. Knowledge is key. Dealers are |
| at current levels. Industry officials said this might | | | | self-determining business, not owned by |
| not be the last of the price hikes. Even after | | | | carmakers, which means they buy wholesale and |
| protracted negotiations, auto industry has still not | | | | sell/buy retail to make money â like any |
| been able to finalize prices for steel under existing, | | | | other business. Wholesale price, sometimes called |
| long-term contract and a prices fluctuation in that | | | | "manufacture company invoice price" is the price |
| period could change things further. A Maruti | | | | that a dealer pays the manufacturer for a vehicle. |
| official, who spoke on condition of anonymity said, | | | | All dealers pay the same price for the same |
| more price revisions could follow if steel makers | | | | vehicle. However, there are other factors that |
| don't keep their promise (made to the | | | | determine a dealer's actual cost. We'll examine |
| government) to hold the price line. While Mahindra | | | | individuals in a moment. Actually increase the price |
| and Mahindra and Honda Sell Cars India have | | | | my own thing some pay national or regional |
| already increased prices, General Motors has said | | | | advertising fees as TV and newspaper ads. |
| it will announce new prices by the end For This | | | | Several customers erroneously believe that |
| month. Tata Motors has yet to take decision but | | | | dealers should be able to habitually sell cars at |
| Autox Company decides no increase at that time | | | | their base cost. If they did, they would soon be |
| any model cars. Do you understand why increase | | | | out of business. |