Japanese auto major Nissan has joined the list of auto makers who have already announced price hikes for their offerings in India from the beginning of the New Year. Nissan India has announced that its car models are going to get marginally costlier in the fast approaching year 2018.
Nissan has recently announced that its vehicles in the car market of India are set to become dearer by up to Rs. 15,000. This price increase will take place across the entire product portfolio of Nissan and its low-cost brand Datsun in India. The price hike of the Nissan models will come into effect from 1st of January, 2018.
It is a usual practice among the automakers to increase the prices of their products by some percentage at the beginning of every new model year in order to keep their profits intact even after the production costs increase from time to time. Price revisions at the start of a new year have become a routine procedure in the Indian automobile industry, as the input costs keep on increasing. One of the reasons behind the car price increase is also the fluctuations in foreign exchange rates and the devaluation of the Indian currency. The Japanese auto maker has also referred to the same reasons behind the company’s decision to hike the costs of its offerings in the Indian market. In a company statement, Nissan India has said that the price increase will enable the company to optimize manufacturing efficiencies.
Nissan becomes the tenth car maker in India to have announced its product price hike this year for 2018, after Skoda, Renault, Isuzu, Maruti Suzuki, Tata Motors, Toyota, Mahindra & Mahindra, Jeep and Volkswagen. More auto makers are expected to join this price increase bandwagon before the current calendar year 2017 draws to its end.
As the car makers operating in India announce price hikes for the next year around December in almost every year, the companies also usually offer great discounts on their products in the month of December. While some auto makers announce sale carnivals during the last month of every year, others offer a shower of cash discounts more quietly. Nevertheless, it is also quite a common practice among the auto makers in India to offer heavy cash benefits during the month of December. This is because the automakers wish to ensure that the old inventory of the cars get cleared before a new year starts. Because of these heavy discounts, many smart Indian car buyers prefer buying new cars only during the last month of the year, after the company has announced price hike for the next year.
Coming back to Nissan, the Japanese auto maker has been trying to boost its sales in India without much success. The company recorded a marginal sales increase last month as compared against its sales in November 2016, but on the whole the sales of both Nissan and Datsun products have been dull in India. Nissan is planning to change this by launching a slew of new models in India soon.