JOIN US“We import lots of parts and the rupee depreciation is impacting us. We were planning to review prices in January but due to the currency fluctuation we may have to do it soon,” General Motors India Vice-President P Balendran said. He said commodity prices have also been increasing, adding to the burden on auto firms.
“We are currently evaluating the quantum of impact on the prices of our products,” Balendran said.
Expressing similar views, Toyota Kirloskar Motor Deputy Managing Director (Marketing) Sandeep Singh said the present currency fluctuation is affecting the company severely. “It is a double whammy for us. On one hand, yen is appreciating, while on the other hand rupee is depreciating. Our margins are getting impacted,” he added.
Fall of rupee is putting severe pressure on companies which import substantial amount of components from overseas. “This is the worst movement of rupee against US dollar. It has lost 15 per cent in the last two months,” Maruti Suzuki India (MSI) Chief Financial Officer Ajay Seth said.
The hit due to the weakening of rupee comes at a time when auto makers are faced with the toughest periods with car sales in the country on a continuous decline.