Skoda is also mindful of market sensitivity following GST 2.0 reforms as the industry gained significant momentum after the initial GST rationalization.
| Photo Credit:
MICHAL CIZEK
“It would be too early to reflect on the present West Asia crisis…overall, we have started well and the industry is expected to see a higher single digit growth this year. But, if the crisis and the strife continue, then we will have to really evaluate. The impact which is coming because of that on the commodity pricing as well as because of the exchange rate, has a severe impact. Time will come that you will have to pass on part of that to the market,” Piyush Arora, Managing Director and Chief Executive Officer of SAVW, told businessline.
Market Mindfulness
Arora further noted that manufacturers must remain mindful of market sensitivity following the GST 2.0 reforms, particularly as the industry gained significant momentum after the initial GST rationalization.
“Price points came down little bit, but if the price points go up because of inflationary pressures, we will have to see how the market is reacting to those pressures…prices went down for different products, so we’ll have to see that. Prices with the exchange rate inflation will have a severe impact on certain category of cars and how much the duty had come down there. It can have an impact on that but I think it is market-driven and finally everyone will have to take call,” he said.
Local Dependence
He also emphasized that since the Skoda and Volkswagen brands maintain a high degree of localization, any decision regarding price hikes will depend heavily on supply chain stability and logistical costs.
“With the market growth and market moving in that direction, we will have to take the right decision for what kind of price position we will pass on the market so that the volume growth expectations are not hindered,” Arora added.
Audi, the German luxury brand under the SAVW umbrella, has already announced a price increase of up to 2 per cent effective April 1 across its entire model range, citing rising input costs and currency fluctuations.
Similarly, other German luxury subsidiaries, including Mercedes-Benz India and BMW Group India (including the Mini brand), have announced 2 per cent price hikes starting April 1 to offset escalating material costs, logistical hurdles, and the depreciating rupee.
Published on March 22, 2026