As the festive season kicks off, car enthusiasts looking to make a purchase will need to shell out more than they might have anticipated.
Several leading automobile manufacturers have announced price hikes for their cars and SUVs, effective from October 1st.
This price adjustment comes in response to the surging demand, making these vehicles costlier for consumers.
Who’s Raising Prices?
In response to the heightened demand during the festive season, many automobile manufacturers are increasing the prices of their vehicles.
Mahindra & Mahindra: The renowned Indian automaker has raised the prices of its popular models, including Thar, Scorpio, SUV 300, and SUV 700, by an average of Rs 81,000.
Kia: The South Korean automotive giant Kia has upped the price of its crowd-favorite SUV, Seltos, along with the multi-purpose vehicle Carens, by Rs 50,000.
Hyundai: As the country’s second-largest car manufacturer, Hyundai has increased the prices of its SUVs, such as Venue and Tucson, by up to Rs 48,000.
Honda: The Japanese carmaker Honda has marginally increased the prices of its well-loved models, City and Amaze, by approximately Rs 8,000.
Automakers’ Perspective on Price Increases
While car manufacturers had faced cost increases over the past year, they chose not to pass on the burden to customers until now.
Apparently, the steady demand for these popular models, some of which even have waiting lists of customers, prompted the price adjustments.
Kia India, for instance, introduced initial prices as part of a promotional offer, which have now been revised after six months.
Competitive Market Dynamics
In a fiercely competitive market, car manufacturers closely monitor each other’s pricing strategies to safeguard their market share. Consequently, it’s not uncommon for them to align their pricing when costs rise, ensuring they remain competitive within the industry.