Decline in rupee value enables Honda and other firms to increase its exports

The present decline in car economy scenario has enabled companies to vouch effective methods to maintain a balanced sale record. A majority of companies have increased the prices of models. The main reason for increase is the oscillation of exchange rates.

Honda India has increased the prices of some of its stunning models of Accord, Amaze, City and Brio which came to light from the 1st of June. These models have contributed credible profits to the company. The Amaze is the recent top selling model which has generated heaps of profits weeks into its launch.

Japan and Thailand are powerful export markets for Honda India; company officials from Honda have announced that few companies have been able to generate impressive import figures. Honda caters to the import of few models of Accord that is brought in from US. If there is deflate in the value of baht and yen with reference to dollar, there will be a balanced momentum in value of rupee.

Other established firms, even the most dominant Mercedes and General Motors have raised their prices with the maximum limit of Rs 10,000 which will be active the current week, company officials from Toyota Kirloskar Motor have announced that there are not further plans for the elevation of prices, but is monitoring the situation with great interest. The increase in price will affect the profit units, but if need be there would be a requirement for an increase in price although the prices have risen lately.

A decrease in value of rupee is not a profitable scenario, company officials from Hyundai are of the view that, the decrease in rupee value will result in an elevation in price of fuel. The car manufacturing network is witnessing minimal sale output in the passenger segment, even with the attractive discounts being rolled out; customers continue to choose models carefully. The profit sale is at an all time low, and higher fuel cost values will dampen the sales which are already shallow. The dip in value of rupee has affected the inflow turnovers. The sour sale output which has dominated the current car economy will require significant time to improve due to the unfavorable conditions that prevail.

The varying rupee values is not always negative, there are positive outcomes as well in the export segment. Honda has exported some of their efficient models for the South African market; there will be admirable profits in other segments in Africa as well. Hyundai has also encountered fruitful outcomes in the export segment contributed by the depreciation in value of Indian currency.

There is indeed a brighter side to the reduction in rupee value where Honda can focus on exports. Thailand and Japan are major export players for Honda India; the Amaze with its remarkable mileage would suit the conditions in countries that thrive on cars for commuting. In America the Honda Amaze will be highly beneficial to the public. If Honda focuses on export category, the increase in sales of the export segment will enhance the dominance of the company in auto industry in India, the company has grabbed the fourth spot despite the current unfavorable economic phase.