As 2023 draws to a close, the automotive industry is preparing for a notable shift as several major players announce plans to increase the prices of their vehicles starting January 2024.
Companies such as Maruti Suzuki, Tata Motors, Mahindra, Audi, Maruti Suzuki, and Mercedes-Benz India are gearing up for variant-wise price hikes, citing the surge in input costs fueled by overall inflation and heightened commodity rates.
Maruti Suzuki’s Decision: Variant-Wise Price Increase Amid Rising Steel Costs
Maruti Suzuki India, having last adjusted vehicle prices with a 0.8% increase in April this year, is once again set to raise prices in the coming year.
Citing a recent uptick in steel prices, which constitute approximately 38% of commodity purchases, the company aims to offset costs internally.
The decision to implement a variant-wise price hike has been deemed a last resort.
Tata Motors’ Contemplation: Consideration to Increase Prices on Passenger and Electric Vehicles
Tata Motors is actively considering the prospect of raising prices for its passenger and electric vehicles, with plans to implement the changes in January 2024.
While the extent and specifics of the price adjustments are yet to be disclosed, an official statement from the company is expected in the coming weeks.
Mahindra’s Directive: Confirmation of Price Hikes in January 2024
Mahindra & Mahindra has formally decided to raise the prices of its automotive products, with the CEO (Automotive Division) Nalinikant Golagunta stating the intention to implement the increase from January 2024.
The company assures that detailed information regarding the price adjustments will be shared at an appropriate time.
Honda’s Move: Honda Cars India Announces Price Increase
Honda Cars India has recently confirmed plans to increase the prices of its cars from January 2024.
The decision is attributed to the escalating production costs. A senior official from the company provided this information, signaling changes that may affect Honda car buyers in the upcoming year.
Industry-Wide Trend: Luxury Car Brands Follow Suit: Mercedes-Benz and Audi Join the Price Hike Wave
Luxury car manufacturers are not exempt from this industry-wide trend. Mercedes-Benz India is actively considering a price increase from January, and Audi India has officially announced a hike of up to 2% on its vehicles effective January 1, 2024.
Both companies cite the rise in input and operating costs as the primary drivers for the decision.
Impact on Consumers: Prospective Car Buyers Brace for Higher Costs in the New Year
As these automotive giants navigate the landscape of rising costs, consumers can expect a notable impact on the pricing of vehicles across various brands.
The new year is likely to usher in a challenging era for prospective car buyers, prompting careful considerations in light of the industry-wide price adjustments.