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TABLE 2.6: RECENT TRENDS IN PRICES OF CARS, 2008 TO 2012
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| TABLE 2.6: RECENT TRENDS IN PRICES OF CARS, 2008 TO 2012 (Thousand Rupees) Model March-June 2008 (Range) January 2012 (Range) Percentage Increase of Mid- Values Mehran 444 – 352 625 – 510 42.6 Alto 554 – 505 796 – 727 43.8 Cultus 677 – NA 990 – 925 41.4 Liana 900 – 836 1351 – 1,282 51.7 Swift - 1,156 – 1056 - Corolla 1,020 – 930 1,739 – 1,444 63.2 Altis 1,390 – 1,300 1,879 – 1,789 36.4 Cuore 554 – 412 935 – 824 82.1 Civic 1,589 – 1,549 2,048 – 1,778 21.9 City 959 – 899 1,550 – 1,409 59.3 Source Document on ‘Price Trend, EDB. Car manufacturers frequently justify their price increase on the grounds of appreciation of yen, which makes CKD vehicles and parts more expensive. During the last four years, the value of the yen with respect to the rupee has increased by as much as 87 percent, while the cost of domestic inputs is estimated to have risen by 64 percent. Therefore, in real terms car prices have fallen significantly, reflecting the depressed demand conditions since 2008, and profit margins have been squeezed. The sales/turnover of most OEMs, who are members of PAMA, is generally available from their annual financial statements. Problems arise in the estimation of turnover of units who are not members of producer associations and/or are in the small-scale/informal sector. These problems are particularly severe in the case of the auto parts sub-sector. For this sub- sector, the following methodology has been adopted i) for input of auto parts into manufacture of new vehicles by OEMs, input-output ratios for domestic and imported parts have been derived from the data on industrial costs given in the CMI 2005-06. 24 ii) from data on vehicle user costs provided by Ismail (2011) the consumption of parts has been estimated for the repairs and maintenance of the existing stock of vehicles. iii) from the total demand of parts estimated from (i) and (ii) combined imports of parts have been deducted to get an overall estimate of the turnover of domestic parts. Accordingly, the estimates for 2009-10 areas follows Rs in Million) Download 0.77 Mb. Share with your friends:
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