Automakers India Maruti Suzuki, Mahindra & Mahindra, and Audi India have revealed their plans to hike the price of passenger vehicles from January 2024.
According to reports, Tata Motors and Mercedes-Benz India are also mulling a price hike of their models from next year and reasons cited by these carmakers for the hike include overall inflation and increased commodity rates.
Maruti informed the stock exchanges that “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”. The country’s leading brand in automobile industry sells a range of vehicles from entry-level small car Alto to multi-utility vehicle Invicto, ranging from Rs 3.54 lakh to Rs 28.42 lakh.
“There is an inflationary pressure all around, including volatility in commodities. 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. The price hike would be substantial in some models, senior executive director of Maruti Suzuki Shashank Srivastava told PTI.
Mahindra and Mahindra CEO (Automotive Division) Nalinikanth Gollagunta said they intend to take a price increase for its automotive products effective January 2024. The details will be announced closer to the time, he said in a statement.
Audi India Head Balbir Singh Dhillon, in a statement, said that the price hike of about 2% will be across the model range from January next year. He attributed it to rising input and operational costs. “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. 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.”
Tata Motors said it is also considering increasing the prices of its passenger and electric vehicles in January 2024. “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.
