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Volkswagen India to hike car prices to offset low margins

Volkswagen India, the Indian arm of the largest European automobile manufacturer Volkswagen is looking at increasing prices across its car portfolio in the Indian car market. The German automaker is considering the price hike in order to offset the depreciation of the Indian rupee.

Commenting on the expected move, Mr. Arvind Saxena Manging Director (Volkswagen passenger cars) Volkswagen Group Sales India stated that the company’s margins are being affected due to the current depreciation of Rupee.

Mr. Saxena added that the decision to hike price is a difficult one and the current slowdown in the Indian automobile industry will be also be taken into consideration. He further stated that the market conditions call for reconsideration of investment decisions.

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