New year, new prices

Prices of cars are set to go up in the new year. While there are likely to be as many as 50 new launches including variants in 2012, the buyer will likely have to shell out more. The more expensive models will only cost much more. One such model is the Renault SUV, Koleos, which will see a hike of Rs 100,000 on its existing price starting January 1.

The SUV is currently available for Rs 22.99 lakh, ex-showroom, New Delhi. “The price hike has been necessitated by the increase in the cost of raw materials and fluctuations in the currency market,” says Marc Nassif, MD, Renault India.

The company will announce the price of its compact car, Pulse, at the Auto Expo which starts from January 5.

Almost all manufacturers are set to increase prices of their vehicles. Hyundai Motor India is set to hike prices by 1.5 to 2 percent across its model portfolio. “ We are in the process of working out the specific increase on the various models,” says Arvind Saxena, director—marketing and sales, Hyundai Motor India.

Carmakers will have to grapple with the impact of a falling rupee in the first months of the year. The rupee hit a new low of Rs 53.23 to the US dollar which makes imported parts expensive.