Starting January 1, automobile companies in India are set to hike prices. From Maruti Suzuki and Tata Motors to BMW, nearly every major carmaker has announced a hike in prices. This comes on the back on increased input costs and the transition to BS6 norms, which also increases costs for companies.
While some automobile companies have hiked prices across the board, some have hiked prices only for a certain segment of vehicles. The hike in prices also comes at a time when the industry saw some improvement in sales during the festive period after several quarters of a slowdown. Here are the carmakers that have announced a price hike:
India’s largest automobile manufacturer was the first automobile major that announced that it will increase the price of its vehicles from January 2021. This, it said, was because the cost of its vehicles has been adversely impacted due to an increase in various input costs, making it imperative for the company to pass on some of the impact to customers. The price increase shall vary across different models, the statement added.
Last week, M&M announced that it will increase the price of vehicles in its range of passenger and commercial vehicles' across models. "This has been necessitated due to the increase in commodity prices and various other input costs," a company statement said.
The company said that details of the price increase across different models will be communicated in due course.
On Monday, the company also said that it will be increasing prices of its tractors across models.
"Mahindra & Mahindra's farm equipment sector today announced that effective January 1, 2021, the company will increase the price of its range of tractors across models. This has been necessitated due to the increase in commodity prices," the company said in a regulatory filing.
Hyundai too, will be hiking prices of its vehicles citing an increase in input and material costs. While the price hike will come into effect from January 2021, the quantum of increase, it said, will depend on the mode, the fuel type and what variant it is.
While all carmakers are hiking prices across board, Tata Motors announced on Monday that it will be increasing prices only across its commercial vehicle range, effective January 1, 2021.
“The steady rise in material and other input costs, impact of forex and transition to BS6 norms, have cumulatively escalated the cost of manufacturing vehicles. The company had thus far been absorbing the addition in costs but with their steady rise in line with market trend, it has become imperative to pass at least some portion of the cost increase to customers via appropriate price revisions,” the company said in a statement.
The price increase is expected across the portfolio of M&HCV, I&LCV, SCV & buses. The actual change in price will depend on individual model, variant and fuel type.
Renault India, which sells Duster and Kwid among others, will be increasing the prices of all its products by up to Rs 28,000 from January.
Ford India too said last week that it will be hiking prices of its vehicles by up to 3% from January. As per a PTI report, an increase of 1-3% will translate into an increase of around Rs 5,000-Rs 35,000 depending on the model. However, he added that bookings which made but were not delivered in 2020 will be protected from the price increase.
As per a PTI report, Honda Cars is also likely to increase prices and has reportedly informed its dealers about the same. The price hike will be on its entire domestic portfolio.
MG Motor, which sells Hector and Hector Plus, announced that it will be increasing prices by up to 3% due to an increase in ‘miscellaneous costs’ by the company. The price hike, effective January 1, will be across models.
Luxury carmaker BMW Group India said that starting January 4, prices of all the BMW and Mini models will be increased by up to 2% across models.
"From 4 January 2021, BMW Group India will introduce the new pricing for BMW and MINI portfolio, increasing the prices marginally by up to 2% to offset the increasing input costs. This will ensure that customer satisfaction, dealer profitability and sustainable growth, which are fundamentals of a successful business, remain strong," Vikram Pawah, President at BMW Group India reportedly said.
Another luxury carmaker, Audi, had announced in November that it would be hiking prices of all its models by up to 2% from January 1 due to rising input costs and weakening of the rupee.
"At Audi India, we strive to give our customers the best, but the rising inputs costs and currency fluctuations have put a strain on our cost structures, and we are forced to make amends to prices. Starting January 1, 2021, our model range will see a price revision of up to 2 per cent. While we have tried to absorb the impact at various levels, the current situation necessitates an increase in price for sustainable growth,” a Hindu BusinessLine report quotes Balbir Singh Dhillon, Head of Audi India as saying.
Known for its pick-up vehicles, Japanese automobile company Isuzu will be hiking prices of its pick-up range of vehicles that include D-MAX Regular Cab and D-MAX S-CAB from January 1 by around Rs 10,000. This, the company reportedly said, is due to increasing input and distribution costs.
Not just cars, two-wheelers too, are set to get more expensive with Hero MotoCorp saying it will raise two-wheeler prices from January 1, 2021. The company said that a steady rise in commodity costs across the spectrum, including steel, aluminium, plastics, and precious metals was the reason for the upcoming price rise.
"In order to partially offset the impact of the commodity costs, we will be increasing the prices of our products by upto Rs 1,500, with effect from January 1, 2021. The increase will vary across models, and the exact quantum will be communicated to our dealers in due course,” it said in a statement.