German car maker Volkswagen today said it is considering increasing the prices of its products to offset the impact of rupee depreciation.
“Rupee depreciation is impacting our margins very heavily. We have to increase our prices soon. We are currently working out the quantum and we might take a final call around September 10,” Volkswagen Group Sales India, Managing Director (Volkswagen passenger cars), Arvind Saxena, told presspersons here.
The industry is in a tricky situation as demand is low. Hiking prices is not an easy decision, he added.
Saxena was speaking on the sidelines of the annual convention of the Society of Indian Automobile Manufacturers (SIAM).
When asked if the current slowdown could impact investments by automobile companies in the sector, Saxena said: “In the current scenario companies will definitely reconsider investment decisions.”