Volkswagen India, the Indian arm of the European automobile giant Volkswagen has announced its decision to revise its car prices from the month of January 2014. The price hike by the German automaker will be to the tune of up to 2.5 percent and will come into effect from January 1, 2014.
Speaking about the price revision, Mr. Arvind Saxena Managing Director Volkswagen Passenger Cars stated that the constant rise in input costs throughout the year 2013 has compelled the carmaker to take the decision. He added that the carmaker has tried to absorb the increase in costs, but will have to resort to price hike in order to maintain quality standards.
Volkswagen India is yet another automobile manufacturer in India which has buckled under the pressure of high input costs brought about inflation and the depreciation of the Indian Rupee. The Indian automobile industry has been witnessing sluggish sales throughout 2013. The sales remained flat even through the festival season in November 2013. The slowdown in sales has further impacted the revenue and profits margins of the carmaker further placing undue pressure on the costs.