Hindustan Motors-Mitsubishi has announced that it will be raising the prices of the Outlander 2010, from September 1, 2010. The price hike, which will be in the range of 1.5 to 2%, is primarily due to the rising input costs and the appreciation of the Japanese Yen against the Indian Rupee.
Speaking about the development, Mr. Y. V. S. Vijay Kumar, Executive Vice President and head of Mitsubishi business at HML, said, "We announced an introductory price on the Outlander 2010, when we launched the product, which came with many advanced features. Since then there have been significant currency fluctuations, with substantial appreciation of the Japanese Yen against the Indian Rupee. This has resulted in huge rise in the cost of imports, which has impacted our bottom lines. Therefore, we have no choice but to pass on a marginal cost increase."
Currently priced at Rs. 19.95 lacs, the Outlander 2010 has sold 150 units in July 2010 with an order backlog of 300 units. The company has increased the production capacity and expects to produce and sell close to 250 units in the month of August. All the customers who book the Outlander 2010, till August 31, can avail of the older price.
