From Maruti Suzuki To Tata Motors: Why Carmakers In India Have Announced Price Hikes From January 2023

Are you planning to buy a new car in the new year 2023? Then get ready to shell out more from your pocket as top carmakers have decided to increase vehicle prices w.e.f 1 January 2023.

Maruti Suzuki, Tata Motors, Mercedes-Benz, Honda, Hyundai, Audi, Renault, Kia India and MG Motor have already announced plans to raise vehicle prices beginning in January 2023.

Reason Behind Price Hikes

Why are all major automakers hiking car prices w.e.f 1 January 2023? Well, the price hikes are being done to offset the impact of rising input costs.

German luxury automaker Audi India has announced a 1.7% price increase across the board, while Mercedes-Benz India announced a 5% price increase beginning January 1, as per PTI.

Meanwhile, South Korean automaker Kia India¡¯s quantum of price increase would likely be up to Rs 50,000, depending upon model and trim. French automaker Renault, on the other hand, has not reportedly disclosed the magnitude of the price increase it intends to implement beginning next month.

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Tata Motors has already announced that it will be increasing the prices of its commercial vehicles by up to 2% from January 2023. Tata Motors is expected to also increase passenger vehicle prices in order to comply with emission norms that will be rolled out by April 2023.

Also Read: When Tata Motors Came Out With A Nano Car Worth Rs 22 Crore

Statements By Automakers

MG Motor India said that it intends to increase prices soon ranging between 2-3% depending on models and variants.

"The price revision is likely to balance the impact of high commodity prices. The regulatory change will have its impact on the cost, even the real impact of softening of commodity prices is only going to come from next quarter and we still have the residual impact of the commodity escalation that we have seen during the year.¡± said Shailesh Chandra, Managing Director of Passenger Vehicle and Electric Vehicles, Tata Motors.

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"The primary objective of the company's business strategy focuses on a model that begets profitability and sustainability. The price correction is affected as a result of the rising supply-chain-related input and operational costs," PTI quoted Audi India Head Balbir Singh Dhillon as saying.

The new price range for the company models is directed at maintaining the premium price positioning of the brand, ensuring sustainable growth of both the automaker and its dealer partners, he added. Audi India's current line-up includes the petrol-powered A4, A6, A8 L, Q3, Q5, Q7, Q8, S5 Sportback, RS 5 Sportback, and RSQ8.

Its electric vehicle portfolio under the e-Tron brand comprises the e-Tron 50, e-Tron 55, e-Tron Sportback 55, e-Tron GT and RS e-Tron GT.

Mercedes-Benz India said the constant increase in input costs and increased logistics costs have been exerting significant pressure on the overall operational costs of the company.

This development has prompted the automaker to upwardly revise the ex-showroom price of its model range, enabling a sustainable and profitable business, it said, as per PTI.

Mercedes-Benz India Managing Director & CEO Martin Schwenk reportedly said although the company is absorbing the majority of the increase, it is left with no option but to pass on some portion of the cost hike to the customers.

"To run a sustainable and profitable business for us and our franchise partners, a price correction is necessitated to offset the rising inflationary cost pressures," he added.

Renault India said, as per the report "Reasons for the price hike are to partially offset the impact of constant increases in input costs largely driven by pricier commodities, fluctuations in foreign exchange rates, inflation and also due to regulatory obligations."

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Hyundai & Honda Too Join The List

Last week, Hyundai Motors India too joined the list and announced price hikes w.e.f January 2023 due to an increase in input costs.

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¡°The company has continued to absorb rising cost, however will now pass on a part of the input cost increase through a revision in prices across its model range. HMIL will continue to make consistent internal efforts to minimize price impact to customers. New prices for HMIL model range come into effect from January 2023,¡± it said in a statement, as per Business Today report.

Japanese carmaker Honda will also be increasing the prices, and its cars are expected to get costlier by up to Rs 30,000 from January 2023.

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