As input costs continue to rise, automakers like Tata Motors, Honda and Renault are looking to increase vehicle prices from January next year to offset the impact. Car market leader Maruti Suzuki and luxury automakers Audi and Mercedes-Benz have already announced to hike vehicle prices from next month.
While Maruti said the planned price increase for January 2022 will for different models, Mercedes-Benz said it will increase its price on select models by up to 2 percent due to improved features and rising input costs.
On the other hand, Audi said that its price increase as of January 1, 2022 will amount to 3 percent across its entire model range due to rising input and operational costs.
When contacted on the issue, Tata Motors President Passenger Vehicles Business Shailesh Chandra said: "Prices of commodities, raw materials and other input costs continue to rise. An appropriate price increase to compensate at least in part for this cost increase seems inevitable soon. Urgent, in the short term. "
The company sells models such as Punch, Nexon and Harrier in the domestic market.
Honda Cars India has also stated that it is considering a price increase in the near future.
A company spokesperson said that "there is a severe impact on the cost of inputs due to the increase in raw material prices. We are still studying how much can be absorbed."
The maker of brands like Honda City and Honda Amaze raised car prices for the last time in August this year.
Renault has said it is also considering a "significant" price increase across its entire range of cars starting in January.
The French company sells models such as Kwid, Triber and Kiger in the Indian market.
Companies have been forced to raise prices, and the price of raw materials such as steel, aluminum, copper, plastics and precious metals increased over the past year.
Additionally, the cost of transportation has increased recently, affecting the overall cost structures of original equipment manufacturers (OEMs).