What will be the effect of the depreciating rupee on the auto sector? How expensive will it be to buy a car? Learn more

Highlights

The loss of rupee day by day will have a direct impact on the automobile sector as well.
Due to its impact on both exports and imports, it will put a direct burden on the customers.
Although its effect will not be visible suddenly, but over time it will come in the form of expensive spares and vehicles.

New Delhi. Slowly but surely, the effect of the slowing down around the world is now visible in India as well. The continuously falling rupee and rising inflation are affecting everyone somewhere. At the same time, the rupee reached an all-time low level. The rupee rose to 81.13 against the dollar. With the news of falling rupee, there is concern in all sectors of business. The auto mobile sector is no exception to this. With the fall of the rupee, there will be a big impact on the automobile sector as well. Yes it is definitely that this effect will not be seen suddenly but gradually eventually this effect will be heavy on the pockets of the customers.

For automobile companies, due to the instability of the rupee, difficulties will increase. Whether it is the domestic market or export, companies everywhere are likely to suffer losses due to the breakdown of the rupee. This loss will directly or indirectly affect your pocket as well. After all, what will happen if the rupee breaks will affect you and how it will be heavy on your pocket, let us know.

what will happen next

  • According to market experts, the biggest impact on the automobile sector will be on imports due to the continuous breakdown of the rupee. In the automobile sector, whether the company is domestic or foreign, large quantities of vehicles and technology are imported from abroad. In such a situation, it is normal for them to become expensive due to the volatile and frequent breakdown of the rupee.
  • Many domestic companies export their vehicles abroad and they have to pay the duty or tax there in dollars. This amount will also increase when the value of dollar increases against the rupee and due to tough competition abroad, companies can put this burden on the customers of their own country by not putting this burden on the customers of their own country or it can be divided.
  • The biggest impact will be seen on those vehicles which are being completely assembled in our country. Whose entire manufacturing is done abroad but they are assembled in India as parts.
  • Due to the breakdown of the rupee, the investment on new technology will have a great impact and its pace may slow down. In such a situation, technically the vehicles will be a notch behind.
  • Its biggest impact will be seen on EVs. Most of the EV technology is foreign. In such a situation, brakes can be seen on the development happening in this field of the automobile sector.

How will it affect your pocket

  • Due to the cost of spares and technology, the cost of vehicles can increase from the price of spares.
  • The possibility of getting expensive from the purchase of the car to the service.
  • Some part of the increased economic burden on companies during exports may also fall on the indicator car market, which will eventually show in the form of rising prices of vehicles.
  • The prices of the assembled vehicles of foreign companies will be seen increasing. Most of the luxury vehicles will be in this segment.
  • The prices of electronic vehicles already equipped with expensive technology can also increase.

how much will be the effect
However, this effect will not appear suddenly and it will not be that big either. Still, it will happen and its direct burden will fall on the consumer. To understand this, we can see that when the goods available for 1 dollar were being available for 80 rupees, now they will get more than 81 rupees. This is simple math but the burden of Rs 81 will not fall on a single person, it will be distributed.

Tags: auto news, Dollar, Rupee weakness

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