Car Prices: Prices of discretionary products like cars, TVs, and phones are firming up as manufacturers raise prices due to commodity costs and forex movement. Car and electronics manufacturers are increasing prices of vehicles and smartphones, while television brands are hiking prices due to rising panel costs. Despite the price hikes, companies do not anticipate a major impact on consumer demand.
Prices of discretionary products like cars, TVs, phones have started to firm up due to commodity costs, adverse forex movement, and inflationary environment. Car manufacturers and electronics brands are raising prices to offset the impact.
Car manufacturers like Maruti Suzuki, Honda Cars India, Toyota Kirloskar Motor and Kia India have just raised vehicle prices, mostly on fast-moving models, by up to 3% due to increase in commodity costs and adverse forex movement. Other manufacturers are also evaluating such a hike.
“Specific to India, pre-covid, the Indian market was worth 10 million outside of the large deals. It’s now trending at 14 million, which went up to 16 million during the pandemic which was an artificial blip. But even after the blip, we are still at 14 million, so India s contribution to the overall PC TAM has actually gone up,” Katyal told reporters Wednesday.