Are you planning to buy a car soon? Well, it might be time to make that decision even sooner as car prices in India will see a hike.
From January 2024, car buyers will have to dig deeper into their pockets for their new ride. Many carmakers have already announced plans to raise car prices.
From Maruti to Mercedes, carmakers have cited high-cost pressure, driven by overall inflation and increased commodity prices, behind the car price hike plans.??
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Maruti Suzuki, the country¡¯s largest passenger carmaker, on Monday said that it would raise prices for its models in January. Tata Motors will also go for price hikes across its range in January, although it is yet to divulge the extent of the increase. Mahindra & Mahindra, too, will increase the prices of its automotive products in the new year, as per a Business Standard report.?
And that's not all. Even luxury car buyers will also need to dig deeper into their pockets. Audi India has announced a price increase of up to 2 per cent across models from January. When contacted, a Mercedes-Benz India spokesperson reportedly said the company was contemplating a price hike in the new year.??
Maruti Suzuki India said in a regulatory filing: ¡°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."?
It further said while the carmaker makes ¡°maximum efforts¡± to reduce cost and offset the increase, it may have to pass on some increase to the market. The price increase will vary across models.??
Meanwhile, a Tata Motors spokesperson reportedly said ¡°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.¡±??
Shashank Srivastava, senior executive officer, of marketing and sales at Maruti Suzuki, pointed to volatility in commodity prices. ¡°Steel prices have been firming up since July, and there is also a general inflationary pressure,¡± he told Business Standard. He further explained that an estimation is made on what has been the overall cost increase, and based on that a decision for a price hike is taken.
Based on the inflation and commodity prices outlook, ¡°we intend to take a price increase for our automotive products effective January 2024,¡± said Nalinikanth Gollagunta, CEO (automotive division), Mahindra and Mahindra. The details will be announced ¡°closer to the time.¡±
As for Audi India, the ex-showroom prices of their vehicles will increase by up to 2 per cent from January 1. Balbir Singh Dhillon, head of Audi India, said: ¡°Achieving profitability through a sustainable business model remains a critical part of Audi India¡¯s strategy, and we are committed to providing the best to our customers. 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.¡±
He said the price change aims to ensure sustainable growth for Audi India and its dealer partners, and the company will ensure that the price hike¡¯s impact is as minimal as possible for customers.
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