Nissan hikes car prices

We first heard from Mercedes-Benz about them hiking prices of their cars across their portfolio. Just a couple of days later Japanese car maker Nissan has announced a price hike.

Nissan says that the hike is to minimize the impact of rupee depreciation and escalating input costs. The increase in the price ranges from 2% to 4% and will be effective from January 2014.

Commenting on the price increase, Richard D Spitzer, Acting Chief Operating Officer (COO), Hover Automotive India (Nissan's National Sales Company) said "Although the rupee situation seems to have stabilized, the higher exchange rate has impacted costs all-round, making price increase inevitable. Inflation-led rise in input costs and raw materials costs also cannot be ignored at this point."

Nissan maintains that this is a marginal increase but an inevitable one. More car manufacturers are bound to follow suite and the announcements from others will come soon enough.