As the BSIV norms are expected to come into the automotive playfield from April 1 in the 13 major cities, R. C. Bhargava believes that a price increase across various segment is necessary to cope up with the rising input costs and intense competition.

Bhargava further explained the fact that the decision on the further pricing of the models will be taken from time to time. Mentioning the fact that, at the moment, it is very difficult to say how are the margins going to move in the next 12 months.

Notably, the price rise will be the third one for 2010. The first price rise came in the month of January owning to the rising input followed by the second as the government announced the rollback of a 2% excise duty.

In fact, as the auto majors are already sitting on a mute mode after the two month of 2010 had been the months of record sales the third hike may prove to be a roadblock as far as the growth of the Indian automotive industry is concerned. The dealers have also started to give additional discounts with a view to lure more consumers towards the showrooms.