Car Prices will Increase from April: Maruti Suzuki, Hyundai, Mahindra Companies May Hike Their Prices
Cars are going to become more expensive from April. Companies like Maruti Suzuki, Mahindra & Mahindra and Hyundai have announced price hikes. The companies said that they have decided to increase prices keeping in mind the increase in raw material and operational costs.
Maruti Suzuki, Hyundai, Mahindra May Increase their Car Prices
The country’s leading carmaker Maruti Suzuki will increase prices of its vehicles by up to 4% from next month. The company is currently making its range of vehicles available in the domestic market, starting from the entry-level Alto K10 to the multi-purpose vehicle Invicto. The market price of these vehicles is between Rs 4.23 lakh and Rs 29.22 lakh. Similarly, Hyundai Motor India’s cars will also be expensive by up to 3%. Tata Motors has also clarified that it will increase the prices of its e-cars and other categories of vehicles.
This is the second time this year that the company has announced a price hike. Mahindra & Mahindra will increase prices of its SUVs and commercial vehicles by up to 3% from April. Kia India, Honda Cars India, Renault India and BMW have also announced price hikes from next month.
Companies have to Spend More Money to Import Goods
Auto industry expert Rajat Mahajan said, “Car companies in India usually increase prices in January and April. Companies have to spend more money to import goods. The dollar has strengthened by 3% against the rupee in the last six months.”As a result, the company is under pressure on input costs. This has had a negative impact on OEM and CKD. Now the demand for entry-level cars is being affected. This effect is seen among first-time car buyers in rural areas.
Increase in Raw Material and Operational Costs
On the other hand, as companies add new features to cars, the cost is also increasing. As a result, the company has been continuously increasing prices for the last few quarters. The company is mulling over the price hike on entry-level cars as demand is likely to pick up in this segment. Experts are optimistic that people will use the money they have in their hands after the tax cuts announced in the budget.
ICRA President Rohan Kanwar Gupta said, “Companies usually hike prices at the beginning of the financial year and calendar year to reduce the pressure of rising raw material prices. Now, considering the increase in raw material prices in the market, the company has announced the price hike. Considering the demand, the growth rate has not been so high. On the other hand, the company is giving good discounts in the passenger vehicle segment. The company is currently focusing on selling the vehicles that are available. In view of this, the pressure of growth in the demand cannot fall so much, said Mr. Gupta.
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