Automakers Maruti Suzuki, Mahindra & Mahindra and Audi India have announced plans to hike prices of their passenger vehicles in January 2024 due to cost pressure driven by overall inflation and increased commodity rates.
Besides, Tata Motors and Mercedes-Benz India are mulling increasing the prices of their models from January. The country's largest carmaker Maruti Suzuki India, which sells a range of vehicles from entry-level small car Alto to multi-utility vehicle Invicto, priced between Rs 3.54 lakh and Rs 28.42 lakh (ex-showroom Delhi), on November 27 said the price hike would vary from model to model.
In an interaction with PTI, Maruti Suzuki India (MSI) Senior Executive Officer (Marketing and Sales) Shashank Srivastava said the price hike would be "substantial" in some models. "There is an inflationary pressure all around, including volatility in commodities, so that is the reason we have decided to increase the prices in January," he noted.
MSI had last hiked vehicle prices by 0.8 per cent in April this year. It had effected a total price increase of 2.4 per cent last fiscal. "There is no choice left for us now but to enhance the prices. We are yet to figure out the exact quantum of the increase," Srivastava said.
Earlier, in a regulatory filing, MSI said the company has planned to increase the prices of its cars in January 2024 on account of increased cost pressure driven by overall inflation and increased commodity prices. "While the company makes maximum efforts to reduce cost and offset the increase, it may have to pass on some increase to the market. This price increase shall vary across models," it said.
Mahindra and Mahindra CEO (Automotive Division) Nalinikanth Gollagunta said that based on the inflation and commodity prices outlook, "we intend to take a price increase for our automotive products effective January 2024. The details for which will be announced closer to the time, he said in a statement.
Mahindra & Mahindra, one of the leading SUV manufacturers in the country on December 6 announced a price hike for its SUV and CV range, effective January 2024. This adjustment is in response to the rising costs due to inflation and increased commodity prices.
Mahindra has made efforts to absorb as much of these additional costs as possible. However, a portion of this increase will be passed on to customers. The extent of the price increase will vary across different SUVs and commercial vehicles.
Tata Motors is also considering increasing the price of its passenger and electric vehicles in January 2024. The company, which sells a range of passenger vehicles starting with hatchback Tiago to premium SUV Safari priced between Rs 5.6 lakh and Rs 25.94 lakh, also did not specify the quantum of the proposed hike.
"We are considering a price hike across our passenger and electric vehicles in January 2024. The extent of the hike and exact details will be announced in a few weeks," a Tata Motors spokesperson said on November 27.
Earlier in the day, German luxury car maker Audi said it will hike the prices of its vehicles in India by up to 2 percent from January next year, citing rising input and operational costs.
The price hike will be effective from January 1, 2024, and will be across the model range, Audi India said in a statement. "Due to rising supply chain-related input and operational costs, we have effected a price correction across our model range, maintaining the brand's premium price positioning," Audi India Head Balbir Singh Dhillon said in a statement.
Further, he said the price correction aims to ensure sustainable growth for Audi India and our dealer partners, and "we will ensure that the price hike's impact is as minimal as possible for customers." Audi India sells a range of vehicles from Q3 SUV to sports car RSQ8 priced between Rs 42.77 lakh and Rs 2.22 crore.
When contacted, Mercedes-Benz India said it is also mulling price hike from January.
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