With a bad economy and slower production, it looks like Honda Siel Cars India is left with no choice but to raise the prices of their cars to survive this economic turmoil. This was announced by the president and chief executive of Honda Siel Cars India Ltd. late Saturday evening at a company awards function.

Honda Siel is working out the price increase for the other models but customers who had ordered the new model of the Honda City will be protected. Launched in November, the City, which has sold 12,233 units, helped Honda lessen the impact of the slowdown.

The Honda Siel CEO sees the downturn lasting for another six months and points out that his firm caters to buyers in the premium segment, where the impact of an economic slowdown is tempered. Even so, “customers are concerned with global economy so they have become naturally cautious”, he said.

(Source) Livemint.com

Continue reading...

Another company that has been reportedly trying to survive the odd economic times is Hyundai Motors and affiliate Kia Motors. Unlike in previous months where exported cars were striking in numbers, car exports plunged last month due to the worsening economic slowdown.

Exports of Korean-built cars, led by Hyundai and Kia, to the Central and South American market fell 71.4 percent to 7,161 vehicles in January, compared with 25,090 units a year ago. Shipments by Hyundai and Kia to the Eastern European market dropped 64.2 percent on an annual basis to 6,126 units during the same period.

Meanwhile, Hyundai and Kia exported 35,898 vehicles produced in Korea to the North American market last month, down 35.4 percent from a year ago.

(Source) JoongAng Daily

Continue reading...