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Sinking rupee leads to rise in car prices

Rupee is becoming a sinking ship when compared to the dollar prices. It has now reached to an all time high of rupees 72 against a dollar. And this has raised a concern around the automakers.

The foreign automakers - Toyota and Mercedes Benz _ to be specific plans to raise the prices of the models keeping in mind that the India rupee has a falling value in the international market.

The company till now was trying to absorb the costs, cutting down its profits, but in the long run it is difficult for the company to continue with the same practice, the burden of which will be shifting to the consumers.

Despite the fact that the company has increased consumption of the local resources over time, it still depends upon imports for a lot of other things.Toyota sells a range of products in the country, from locally-manufactured hatchback Etios Liva to imported premium SUV Land Cruiser.

Mercedes-Benz India Vice President, Sales & Marketing, Michael Jopp also believes that the sagging rupee is a concern for the company.


Merc had already implemented a few price hikes in the recent future. And recently the company has also seen some depreciations that has let to the fall in the value.In case it continues further, price hikes are inevitable.