NEW DELHI: Top car manufacturers in India, including Tata Motors, Kia India and Maruti Suzuki have announced significant price hikes for their vehicles starting next month. This marks another round of price increases in 2025, following earlier adjustments in January. The automakers attribute the decision to rising commodity prices, escalating supply chain costs and inflationary pressures.
The fresh price hike comes even as passenger vehicle (PV) sales remains muted and most carmakers and dealer showrooms offering attractive discounts on less demanded models. As per FADA data, retail PV sales fell 10.34% in February 2025 to 3.03 lakh units.
Tata Motors said on Tuesday that it will raise prices across its entire passenger vehicle (PV) range, including electric vehicles (EVs), from April. The company had previously increased PV prices by up to 3% in January. Additionally, Tata Motors announced a 2% price hike for its commercial vehicles, effective next month.
The automaker stated that the price adjustment aims to partially offset rising input costs, with the extent of the increase varying by model and variant. Tata Motors offers vehicles priced between Rs 5 lakh and Rs 25.09 lakh (ex-showroom Delhi).
Kia India has also announced a price hike of up to 3% across its entire lineup, effective April 1, 2025. This will be Kia’s second such price hike, following a 3% increase in January 2025
Hardeep Singh Brar, Senior Vice President of Sales and Marketing at Kia India, explained that the decision was necessitated by rising commodity prices and supply chain-related costs. However, he emphasized that the company is absorbing a significant portion of the increased costs to minimize the impact on customers.
Maruti Suzuki (MSIL), India’s largest carmaker, announced plans to increase prices by up to 4% across its entire model range from next month. This is the third price hike by the company in 2025, following adjustments in January and February.
MSIL said that while the company continuously strives to optimise costs and minimise the impact on consumers, a portion of the burden must be passed on to them.
The price increase comes as the automotive industry grapples with global challenges, including rising raw material costs, supply chain disruptions and inflationary pressures. It is expected that most other carmakers will follow the trend and go for price hikes in the coming days.