Electronic, Car Prices Gone Up With Rupee Depreciation

With decrease in the value of rupee against dollar, the price hike across consumer segments like home appliances, electronics, and cars is seen in India. This hike in prices may continue till the rupee maintains its current decreased levels.

While companies have sufficient equipment from local sourcing, but many of the key inputs are imported for various reasons like technology sophistication. According to officials from Panasonic’s consumer products division, they are forced to increase prices again by the first week of July. The price hike will be 4% on white goods and on televisions it will be about 2-3%.

Industry leaders, Samsung and LG also feared about the rupee depreciation and said that rupee fall is putting a lot of pressure on the consumer electronics business. Besides, an official from LG India said that, they had raised prices in April by 1.5-2%, but the depreciation of rupee is again putting a lot of pressure.

This situation is also appearing in car industry, where several leaders in car industry said that their company’s profits are going down. As 30% of the material content is imported, the rupee is impacting more on these manufacturers. According to owner of Hyundai India, material costs have gone up with the rupee fall. Thus, rupee depreciation is distressing even the competitive leaders in electronic and car industry.

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