Luxury cars, durables and consumer electronics could become cheaper in the coming months on the back of a stronger rupee, which is expected to maintain its astral showing after Narendra Modi-led BJP got a majority mandate in the elections.
However, despite poor sales, companies, which had resorted to price rise when the Indian currency hit a record low of 68.83 to a dollar, are not going to go for a cut at once and wait for the budget to get more cues on government policy.
Sunil Nayyar, head of sales at Sony India, stated that the company is “closely watching” the rupee movement as it works out its future strategy on pricing.
“Nothing is happening immediately, and we will wait and watch for the next two to three months. If the rupee continues to strengthen … we can look at passing on the benefit to the market.”
LG too said that the rupee’s movement is a positive.
“If this trend continues (stabilized rupee), it will further boost sales in the consumer durables market. We are closely monitoring exchange rates, but it is too early to comment on the price impact,” said Sanjay Chitkara, head of corporate marketing at LG India.
Rupee goes up to an 11-month high to 58.64 on Tuesday on the back of strong foreign inflows.
The rupee’s movement is a “positive sign,” said Deputy MD at Samsung India, Ravinder Zutshi. But, changes on pricing will be considered only after the Budget, he said.
Joe King, head for Audi in India, said:
“We continue to closely monitor the rupee with a balanced view towards customer interest and sustainable profitability before we arrive at any decision on price.”
Eberhard Kern, MD and CEO of Mercedes-Benz India, says that a rising rupee will help the automobile industry,
“changes on pricing will be made only after monitoring the foreign exchange movements further.”