Renault India range of vehicles will be subject to a price hike with effect from January 1, 2013. This price hike was announced by Renault, following higher input costs which is putting a burden on company profits. Price increases will be to the tune of 1.5 percent across the range.
The company is resorting to price hike in much the same way as other car makers in the country have announced earlier. While Renault India absorbed the increase in input costs to some extent they are left with little choice but to pass on a percentage of these costs to customers though the company has ensured that it is at bare minimum so as to not affect sales.
Renault India has its manufacturing unit in Oragadam near Chennai. The company is represented throughout Indian through their 75 dealerships which they hope to increase to 100 by the end of this financial year. Renault India sells five models in the country. These include the hatchback Renault Pulse, Scala a mid sized sedan, Renault Duster their most popular SUV, Fluence – a premium sedan and top of the line Koleos SUV.
Sumit Sawhney, Renault India Executive Director (Sales and Marketing), said.”We have to follow suit with the rest of the industry as input costs have gone up tremendously… we are forced to pass on some of the burden to our customers as high input cost, coupled with high inflation are all eating into our bottom line. The price increase will be up to 1.5 per cent across the range and will be effective from January one, 2013.”