Hi BikeAdvice! If you are wondering why I used those greetings to welcome you all don’t be surprised. My association with Bikeadvice was of more than a year till something just off the record happened, well that’s not so very important. I am happy that to make my way back in to the team, Yeah. Now let’s just jump to the news we are here for.
Here is a piece of news coming from one of the good brands of Indian motorcycle industry, Bajaj Auto. Indian Rupee i.e. INR is sliding each passing day against USD which has had sort of a chaos amongst importers as they will now need to pay those extra bucks for getting their imports done. The sliding rupee is now showing its effect on the motorcycle market as well as Bajaj auto indicated that it might increase the prices of its products because of the depreciating rupee and the cost of raw materials going up.
Bajaj Auto president Mr. K Srinivasan was of the opinion that the price rise might be just round the corner as there is a pressure on raw materials because they are usually corrected to the dollar rate and thus sliding rupee has only added to the increased cost of raw materials.
He was also of the opinion that the motorcycle industry is highly localized and that any imports the industry does are because of the cost advantage. Further to this he said that the day cost advantage vanishes from imports the industry would generally stop those imports and look for alternatives that are more cost effective.
Basically the import costs, rising raw material prices and the sliding rupee are contributing to Bajaj’s decision of getting another price hike into play. If we look closely, Bajaj’s share has not decreased but sliding INR might have reduced their profits and thus this expected price rise. Lastly, we can only hope that our Honorable RBI takes some quick action before it’s too late to appreciate the rupee. In the past 6 months INR has drastically depreciated and one dollar now costs around 57. Thus, one thing is for sure, if INR continues to slide then no relief will be there and we will see more regular price hikes.