Suspense Crime Sach Ka Dam
Prices of various car models are set to increase as vehicle manufacturers have announced price hikes from January. Car manufacturers cite a rise in input costs and operating expenses as the main reason for implementing the price hike from next month. However, industry experts say that this exercise is done by vehicle manufacturers every year in December to increase sales volumes in the last month of the year, as customers postpone purchases to later months to buy vehicles in the new year.
When do prices rise
Rajat Mahajan, partner at consultancy firm Deloitte India, said, “We have seen a few cycles of price hikes in India. It happens at the beginning of the calendar year and the financial year, but some OEMs also choose the timing based on their planned launches.” Rohan Kanwar Gupta, vice president and sector head (corporate ratings) at rating agency ICRA, said vehicle manufacturers usually increase prices at the beginning of the calendar year to compensate for factors such as inflationary pressures and increased operating costs due to commodity prices, etc. He said, “The recent price hikes announced by various car manufacturers are for this reason. It should be noted that the passenger vehicle industry is already offering huge discounts on various models, with the industry focusing on reducing stock levels.”
These companies are increasing the prices
The company, which sells models ranging from the entry-level Alto K10 to the Invicto, said it is increasing prices in view of rising input costs and operating expenses. Hyundai Motor India is also considering increasing prices of its model range by up to Rs 25,000 from January 1, 2025. Mahindra & Mahindra will increase the prices of its SUVs and commercial vehicles by up to three per cent from January. Mahindra & Mahindra said the adjustment has been made in view of rising costs due to inflation and increased commodity prices. Similarly, JSW MG Motor India said it will increase prices of its entire model range by up to three per cent from next month. The company said the price hike is a result of continuously rising input costs and other external factors.
Honda can also increase the price
Honda Cars India is also considering a price hike, but it has not yet decided the amount of the hike. Luxury car market leader Mercedes-Benz India plans to increase prices by up to three per cent from January. Audi India will increase prices of its entire model range by up to three per cent due to increased input and transportation costs. Similarly, BMW India plans to increase prices of its model range by up to three per cent from January next year.
