Petrol, Diesel prices goes up
Government of India has announced a sharp increase in prices of petrol,diesel,lpg and kersone. No one is barred from common man to auto manufacturers are set to suffer. With the hike, price petrol is increased by Rs 3.73/litre, Diesel goes up by Rs 2, LPG by Rs 35 and kerosene by Rs 3/litre. The increase in price comes into effect immediately.
Also the government has decided to freed the prices of petrol and diesel from its control (which means it market driven from now onwards). This move is good for the Oil companies on the long run. At the same time as the inflation already hovering around 10%, it is surely a bad news for consumers. The demand for automobile may take a hit following the hike.
[Via: Vicky]
Tyre Prices Shooting Up In India
There has been an increase in the prices of the car tyes. And the 7 per cent increase for the tyre price is because of the high demand and low supply. The car owners actually need not spend an extra 5 to 7 per cent. But it is the carmaker who needs to shell out an additional cost of Rs.800 for a new tyre for every new car they sell.
A deficiency of tyres in the market has become the reason for decrease of inventories at tyre makers to just 5-7 days from 20-25 days. And this is seriously affecting car manufacturers such as Maruti Suzuki, Hyundai Motor India, Tata Motors, General Motors India and Ford India. There isn't any clear information on how much are the carmakers affected by this situation.
"There is a demand-supply mismatch. While production has increased in the past few weeks, the supply of tyres has not kept pace, resulting into shortages. We have asked tyre companies to augment supplies but that has not happened yet," a senior executive at Tata Motors said.
Auto makers assume that tyre companies are charging arbitrary prices. But the tyre makers are of the opinion that they are trying to meet the demand despite production constraints.
"Tyres are a capital-intensive industry and there has been no major capacity addition in a year due to slowdown in the market and economic recession. While sales have jumped in recent months, production has not increased to that level, leading to shortages," said a senior executive of a tyre company on condition of anonymity. It is expected that the price will be dropped once the festival season is over and the demand for cars come down.
TVS Motors Cuts Two-Wheeler Prices
TVS Motor Company has cut its two-wheeler prices on its various products under various categories by up to Rs. 2000. The move comes following the 4 percent reduction in CENVAT announced by the government last week.
According to H S Goindi, Senior Vice-President of Sales, TVS Motors, "The overall range of price cuts varies between 700-2,000 rupees for all scooters and motorbikes. We have passed on the benefits (of the excise duty cut) to the customers." The prices are effective from Wednesday and are applicable across India.
[Via: cartradeindia]
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