Skoda can also be conscious of market sensitivity following GST 2.0 reforms because the business gained important momentum after the preliminary GST rationalization.
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MICHAL CIZEK
Skoda Auto Volkswagen India (SAVW) is at present monitoring the impression of the West Asia battle on commodity prices. The premium automaker said that any potential value hikes for its car lineup will rely on how the scenario evolves.
“It would be too early to reflect on the present West Asia crisis…overall, we have started well and the industry is expected to see a higher single digit growth this year. But, if the crisis and the strife continue, then we will have to really evaluate. The impact which is coming because of that on the commodity pricing as well as because of the exchange rate, has a severe impact. Time will come that you will have to pass on part of that to the market,” Piyush Arora, Managing Director and Chief Executive Officer of SAVW, informed businessline.
Market Mindfulness
Arora additional famous that producers should stay conscious of market sensitivity following the GST 2.0 reforms, significantly because the business gained important momentum after the preliminary GST rationalization.
“Price points came down little bit, but if the price points go up because of inflationary pressures, we will have to see how the market is reacting to those pressures…prices went down for different products, so we’ll have to see that. Prices with the exchange rate inflation will have a severe impact on certain category of cars and how much the duty had come down there. It can have an impact on that but I think it is market-driven and finally everyone will have to take call,” he mentioned.
Local Dependence
He additionally emphasised that for the reason that Skoda and Volkswagen manufacturers preserve a excessive diploma of localization, any choice concerning value hikes will rely closely on provide chain stability and logistical prices.
“With the market growth and market moving in that direction, we will have to take the right decision for what kind of price position we will pass on the market so that the volume growth expectations are not hindered,” Arora added.
Audi, the German luxurious model below the SAVW umbrella, has already introduced a value enhance of as much as 2 per cent efficient April 1 throughout its complete mannequin vary, citing rising enter prices and foreign money fluctuations.
Similarly, different German luxurious subsidiaries, together with Mercedes-Benz India and BMW Group India (together with the Mini model), have introduced 2 per cent value hikes beginning April 1 to offset escalating materials prices, logistical hurdles, and the depreciating rupee.
Published on March 22, 2026