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Foreign exchange rate fluctuation forces Harley Davidson to hike prices.
Foreign exchange rate fluctuation forces Harley Davidson to hike prices.
Cult-bike maker Harley-Davidson today announced the increase in prices on select models sold in India by Rs 30,000 to offset the impact of foreign exchange rate fluctuation.
The price increase will be applicable on Street 750, Sportster family and Softail range of bikes in India, Harley-Davidson India said in a statement.
The new prices will come into effect from April 1. Explaining the move behind the price hike, the company said: "The increase is due to the impact of the Rupee-Dollar exchange rate."
On Friday, rupee had closed at 67.05 against the dollar. Although, it was a two and half month high, the Indian currency has weakened in the recent past against the dollar.
Explanation for non-Commerce bikers: Harley Davidson imports most of its motorcycles from abroad. When the exchange rate fluctuates and the Rupee gets weaker than the Dollar (which happens a lot), then more rupees are to be exchanged for each dollar. These "more rupees", in CBU imports has to be borne by the importer (the company), which absorbs it upto a small extent, beyond which the customer bears it.
So, whenever the rupee weakens, the imported articles get more expensive, even if their prices remain constant in their country of production (like USA).
Source: Harley-Davidson hikes prices of select models by Rs 30,000 - The Economic Times
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Harley Davidson has set examples in the past by not hiking prices, even when import duties were raised, thereby absorbing the environmental impact directly into their Balance Sheet. But that obviously can not go on forever.. We have to face a hike with the rise in the general inflation level or fluctuation in exchange rate, with the passing time.
Guys, if anyone is planning to buy one, better hurry. Not much time before March comes to an end.
Cult-bike maker Harley-Davidson today announced the increase in prices on select models sold in India by Rs 30,000 to offset the impact of foreign exchange rate fluctuation.
The price increase will be applicable on Street 750, Sportster family and Softail range of bikes in India, Harley-Davidson India said in a statement.
The new prices will come into effect from April 1. Explaining the move behind the price hike, the company said: "The increase is due to the impact of the Rupee-Dollar exchange rate."
On Friday, rupee had closed at 67.05 against the dollar. Although, it was a two and half month high, the Indian currency has weakened in the recent past against the dollar.
Explanation for non-Commerce bikers: Harley Davidson imports most of its motorcycles from abroad. When the exchange rate fluctuates and the Rupee gets weaker than the Dollar (which happens a lot), then more rupees are to be exchanged for each dollar. These "more rupees", in CBU imports has to be borne by the importer (the company), which absorbs it upto a small extent, beyond which the customer bears it.
So, whenever the rupee weakens, the imported articles get more expensive, even if their prices remain constant in their country of production (like USA).
Source: Harley-Davidson hikes prices of select models by Rs 30,000 - The Economic Times
---
Harley Davidson has set examples in the past by not hiking prices, even when import duties were raised, thereby absorbing the environmental impact directly into their Balance Sheet. But that obviously can not go on forever.. We have to face a hike with the rise in the general inflation level or fluctuation in exchange rate, with the passing time.
Guys, if anyone is planning to buy one, better hurry. Not much time before March comes to an end.
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