car price hike
Prices of various car models are about to increase, as vehicle manufacturers have announced price hikes from January. Car manufacturers cite increase in input costs and operating expenses as the main reason for implementing the price hike from next month. However, industry experts say that this exercise is done every year in December by vehicle manufacturers to increase the sales volume in the last month of the year, as customers postpone the purchase till later months to buy vehicles in the new year. .
When do prices increase?
“We have seen a few cycles of price increases in India,” said Rajat Mahajan, partner at consultancy Deloitte India. “This happens at the beginning of the calendar year and fiscal year, but some OEMs also choose the timing based on their planned launches.” Rohan Kanwar Gupta, vice-president and area head (corporate ratings), rating agency ICRA, said vehicle manufacturers usually increase prices at the beginning of the calendar year to offset inflationary pressures and increase in operating costs due to commodity prices etc. factors can be compensated. He said, “The recent price hike announced by various car manufacturers is for this reason. It should be noted that with heavy discounts already being offered on various models in the passenger vehicle industry, the focus of the industry is to reduce the stock levels.”
These companies are increasing prices
The company, which sells models ranging from entry-level Alto K10 to Invicto, said it is increasing the prices in view of rising input costs and operating expenses. Hyundai Motor India is also considering increasing the prices of its model range by up to Rs 25,000 from January 1, 2025. Mahindra & Mahindra will increase the prices of its SUVs and commercial vehicles by up to three percent from January. Mahindra & Mahindra said that this adjustment has been made in view of rising costs due to inflation and increased prices of goods. Similarly, JSW MG Motor India said it will increase prices of its entire model range by up to three per cent from next month. The company said that this increase in prices is the result of continuously increasing input costs and other external factors.
Honda may also increase the price
Honda Cars India is also considering increasing prices, but has not yet decided on how much the increase will be. Luxury car market leader Mercedes-Benz India is planning to increase prices by up to three percent from January. Audi India will increase prices across its model range by up to three percent due to increase in input and transportation costs. Similarly, BMW India is planning to increase prices of its model range by up to three per cent from January next year.
(With inputs from PTI/Language)
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