Indian carmakers, including Maruti, Tata Motors, Mahindra, Audi and Mercedes-Benz, have announced that retail prices will rise from January next year. The companies said they plan to increase prices due to higher input costs. Other car companies are likely to follow suit as well.
Experts say price increases will range between 2 and 3 percent, with larger increases for some of the best-selling models. The extent of the price increases will vary across different car models, ranging from a few thousand rupees to much more for luxury cars.
While the company is trying to absorb higher input costs, it is now forced to pass on some of the excess to the market due to rising inflationary pressures, Maruti said. A Maruti spokesman said the price hike would be "significant" on some models.
"As the company strives to cut costs and offset the increase, it may have to pass on some of the increase to the market. This price increase will vary across models," a Maruti spokesperson said.
Maruti had last raised car prices by 0.8 percent in April this year. It achieved an overall price increase of 2.4 percent in the last fiscal year.
Tata Motors also confirmed that prices will rise, including those of electric vehicles. A company spokesperson said: “We are considering increasing prices for our passenger and electric cars in January. The extent of the increase and exact details will be announced within weeks.”
“Based on inflation expectations and raw material prices, We intend to increase prices of our automotive products from January 2024, details will be announced soon," Mahindra & Mahindra CEO (Automotive Division) Nalinikanth Gulagunta told.
Audi, the German luxury car maker, also announced a 2 percent price increase across its entire model range. "Due to increased operating costs and inputs related to the supply chain, we have corrected prices across our entire model range. The price correction is aimed at ensuring sustainable growth for Audi India and our dealer partners, and we will ensure that the impact is achieved," Balbir Singh Dhillon, President of Audi India, told AutoNexa. He further added, “Price increases are as minimal as possible for customers.”
Mercedes-Benz India said it is also considering increasing prices from January.
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