Volkswagen considers hiking car prices on rupee fall

As the Indian rupee continued its decline, Volkswagen on Wednesday said it is considering increasing the prices of its products to offset impact on its margins.

"The rupee depreciation is impacting our margins very heavily. We have to increase our prices soon. We are currently working out the quantum of it and we might take a final call around September 10," Volkswagen Group Sales India Pvt Ltd, Manging Director (Volkswagen passenger cars) Arvind Saxena said.

The industry is in a very tricky situation as the demands are low. Hiking the prices is not an easy decision, he added.

Saxena was speaking on the sidelines of the annual convention of Society of Indian Automobile Manufacturers (SIAM).

When asked if the current slowdown could impact the investments by the automobile companies in the sector, Saxena said: "In the current scenario companies will definitely reconsider investment decisions."

With PTI inputs