Get ready to pay more for four-wheelers as top automakers are increasing the prices of their models by 3-4% from next month. The price hike comes after significant discounts offered by original equipment manufacturers (OEMs) and dealers over the past few months to clear excess inventory.
Maruti Suzuki (MSIL) said on Friday that it is increasing the prices of its vehicles by up to 4% from January 2025. “In light of rising input costs and operational expenses, the company has planned to increase the prices of its cars from January 2025. The price increase is expected to be up to 4% and will vary depending on the model,” said MSIL in an exchange filing.
It added, “While the company continuously strives to optimize costs and minimize the impact on its customers, some portion of the increased cost may need to be passed on to the market.”
SUV major Mahindra & Mahindra and JSW MG Motor also joined the bandwagon and announced a price hike of up to 3% from January next year. Mahindra said it will be increasing the prices of its SUVs and commercial vehicles to adjust for rising costs due to inflation and increased commodity prices.
“Mahindra has made efforts to absorb as much of these additional costs as possible. However, a portion of this increase will need to be passed on to customers,” said M&M in a statement.
JSW MG Motor India said that the price increase is a result of continuously rising input costs and other external factors.
Satinder Singh Bajwa, Chief Commercial Officer, JSW MG Motor India, said, “Our dedication to quality, innovation and sustainability remains a priority and drives us to improve our offerings continuously. In doing so, minor price adjustments are inevitable to offset the rising input costs.”
Hyundai Motor India Limited (HMIL), the country’s second-largest carmaker, will increase prices across its model range by up to Rs 25,000, effective from January 1, 2025. The price increase, according to HMIL, has been necessitated owing to an increase in input costs, adverse exchange rate and increase in logistics costs.
The price hike by all the automakers aligns with the auto industry’s common practice of raising vehicle prices by 1-4% to counter inflationary pressures and other challenges. It is expected that other players will also announce a price hike in the coming days.
However, the extent of the hikes this time is anticipated to be modest, reflecting the ongoing sluggishness in the market.
Three German luxury car manufacturers -- Mercedes, BMW and Audi -- have announced a price hike from early next year.
