Press Trust of IndiaDec 06, 2021 12:04:30 IST
With input costs continuing to rise, automakers like Tata Motors, Honda and Renault are looking to increase vehicle prices from January to offset the impact. Already, car market leader Maruti Suzuki and luxury automakers Audi and Mercedes-Benz have announced vehicle price hikes from next month.
While Maruti said the price rise planned for January 2022 will vary for different models, Mercedes-Benz said its hike will apply to select models by up to two percent due to feature enhancements and rising input costs. On the other hand, Audi said its price increase effective 1 January, 2022, will be up to three percent across its entire range.
When contacted, Tata Motors President (passenger vehicles business) Shailesh Chandra said, “Prices of commodities, raw material and other input costs continue to rise. An appropriate price hike to at least partially offset this increase in costs seems inevitable in the near-to-short term.” The company sells models such as the Punch, Nexon and Harrier in the domestic market.
Honda Cars India also stated that it is considering a price increase in the near future. “There is a severe impact on input cost due to commodity prices’ increase. We are still studying how much can be absorbed,” a company spokesperson noted. The maker of cars such as the City and Amaze had last hiked vehicle prices in August this year.
Renault stated it is also looking at a “substantial” price increase across its vehicle range from January. The French company sells models such as the Kwid, Triber and Kiger in the Indian market.
The companies have been forced to hike prices, with substantial increase in prices of essential commodities like steel, aluminium, copper, plastic and precious metals over the past year.
Further, transportation cost has gone up in recent times affecting the total cost structures of original equipment manufacturers (OEMs).