Money9 Edit: Carmakers should resist temptation to hike prices

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For majority of the Indians, buying a car entails great deal of financial planning. The Covid-19 pandemic has acted as the nudge for those who were delaying buying a car.

However, leading carmakers have queered the pitch for them. Citing high input costs, they are raising prices, saying they have no choice.

The pandemic’s impact has crippled the auto sector but the companies should try to avoid passing on impact of input costs to customers.

In the space of two days, two carmakers, including market leader Maruti Suzuki, have raised prices.

This is the second price hike announced by Maruti in 2021.

Nissan too announced that it was hiking prices across its models with effect from April 1.

Both these manufacturers produce popular vehicles priced under Rs 10 lakh and this move will keep those away who were looking to move from a two-wheeler to four-wheeler.

With the coronavirus pandemic once again threatening to disrupt our lives, people are looking to invest in a car as it would offer them comparatively safer mobility options.

With people preferring to invest in personal vehicles more actively following the coronavirus outbreak, it was expected that the carmakers would be announcing more consumer-friendly schemes.

But alas, that is not happening. It seems the demand will stay but won’t result in any sore of additional benefits for those looking to buy a car.

Pouring cold water on buoyant consumer sentiments will hurt the industry in the long run.

The auto industry stakeholders will hopefully find a way around the issue of rising input costs.