Major Indian automotive manufacturers, including Maruti Suzuki, Mahindra & Mahindra, Tata Motors, and Audi India, have disclosed plans to implement price increases for their passenger vehicles starting in January 2024. The decision is attributed to various factors, with rising costs due to overall inflation and increased commodity rates being key contributors.
Maruti Suzuki, the largest carmaker in India, emphasized that the forthcoming price hike would vary among its models and could be substantial for certain vehicles. The company had previously increased vehicle prices by 0.8% in April of the current year and experienced a total price rise of 2.4% in the last fiscal period.
Mahindra & Mahindra’s CEO (Automotive Division), Nalinikanth Gollagunta, stated that the price hike for their automotive products would be implemented based on the outlook for inflation and commodity prices. The specific details of the price adjustments will be announced closer to the effective date.
Tata Motors is also contemplating raising prices for its range of passenger and electric vehicles in January 2024. While the extent of the proposed increase has not been specified, the company assured that details would be communicated in the coming weeks.
Audi India, the luxury car manufacturer, confirmed a price hike of up to 2% across its entire model range, effective from January 1, 2024. The adjustment is attributed to the escalating input and operational costs within the supply chain. Audi India aims to maintain its premium positioning while ensuring sustainable growth for the company and its dealer partners. The impact on customers is anticipated to be minimized.
These decisions reflect the ongoing challenges faced by automakers globally, including supply chain disruptions, inflationary pressures, and increased costs of raw materials, all of which are contributing to the need for periodic adjustments in product pricing.