The effect of the plummeting value of the Indian rupee, having already hit luxury carmakers, is now taking its toll on more mainstream manufacturers. The first company to cave under pressure is Skoda India, and the company is raising the prices of all its models, from the Rapid to the Superb.
The increase in cost of raw materials that’s resulted from the skewed exchange rate has hit Skoda hard, and it has had no choice but to pass some of this on to the customer. Although the actual price hike amounts have not been revealed yet, it is believed that they are only a small percentage higher, with Skoda absorbing a part of the impact of increased costs.
Although Skoda assembles its cars in India, the company still uses a lot of imported content. Expensive items like the engine and gearbox are fully imported.
With the Rupee still in a downward spiral, it’s likely that other carmakers may soon follow suit with price hikes of their own in the coming weeks.
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