After Maruti Suzuki, Hyundai and Tata Motors, Honda Cars India has also announced to increase the prices of its cars. Company's Vice President Marketing Kunal Bahl said that the prices of Honda cars will increase by 2%. The new prices will come into effect from January 2025.
Bahl said that the company is continuously making efforts to ensure that the customers are not affected by the increase in costs. He said the price of the recently launched third generation Amaze will be reviewed in mid-January.
Companies are increasing prices due to increasing manufacturing costs. Before this, other automobile companies like Maruti Suzuki, Hyundai Motor India, Mahindra & Mahindra, Mercedes-Benz, BMW and Audi have also announced increase in the prices of their vehicles from January 2025. All the automobile companies have given almost the same reason behind increasing the prices. Companies are taking such a decision due to increase in overall manufacturing cost due to increase in input cost and logistics.
Every year in December, companies increase the prices of cars.
Tata vehicles will become costlier by 3% Tata Motors will increase the prices of its passenger vehicles by up to 3% from next month. This includes petrol, diesel and electric models. The company said in the statement that it is going to increase the prices of vehicles to partially reduce the impact of increase in raw material costs and inflation. The new prices will be effective from January 2025 and the increase will vary depending on the model and its version.
The current model lineup of Tata Motors includes Tiago and Altroz in the hatchback segment, Tigor in the compact sedan segment, Punch in the micro SUV segment, Tata Nexon in the compact SUV segment, Harrier and Safari in the premium SUV segment. Additionally, the brand has the Tata Curve, an SUV coupe, which was recently launched in the country.
In the electric vehicle category, the company has Curve EV, Punch EV, Nexon EV, Tiago EV and Tigor EV. The company is currently preparing to launch Sierra EV.
JSW MG Motors India will increase prices by 3% JSW MG Motor India will increase prices of all its models by up to 3% from January. The company said that the price increase is being done due to the continuously increasing cost of auto-parts, exchange rate impact and increase in logistics expenses.
Kia cars will be 2% costlier Leading premium carmaker Kia India has announced a 2% increase in prices of all its models. The new prices will be applicable from January 1, 2025. The company said the price increase is being driven by rising commodity prices and rising supply-chain costs.
Prices of Hyundai cars will increase by ₹25,000 Hyundai Motor India Limited (HMIL) announced an increase in prices of all its models by up to Rs 25,000. The new prices will be applicable from January 1. The reason for the increase in prices is the increase in input costs. HMIL said in the statement that the price increase will be done on a variant-wise basis on all models and will be increased up to a maximum of Rs 25,000.
Maruti Suzuki cars became costlier by 4% Maruti Suzuki said that, due to rising raw material costs and operational costs, car prices will be increased from January 2025. The price increase will be up to 4% and will vary depending on the model. Although the Company continuously strives to optimize costs and minimize the impact on its customers, some portion of the increased costs may have to be passed on to the market.
Mahindra & Mahindra vehicles will also become costlier by 3% The company will increase the prices of the entire range of sports utility vehicles (SUV) and commercial vehicles (CV) in its portfolio by up to 3%. Mahindra & Mahindra said in an exchange filing on Friday (December 6) that the increased rates on vehicles will come into effect from the beginning of January 2025. The company has taken this decision due to rising costs due to inflation and rise in commodity prices.
2 reasons for price increase every year
- Car manufacturers cite costlier components, input costs and increase in company operating expenses as the main reasons for implementing the price hike from January. However, industry experts say that auto companies announce price increases in December so that people buy vehicles before the New Year. Otherwise, due to fear of increased prices in the new year, customers postpone buying a car. Apart from this, companies also have to vacate last year's manufacturing stock. If the customers do not buy the vehicle in the last months of the year, then in the new year the manufacturing of the vehicle looks one year old. That's why companies also give more offers on cars. This trend is mostly seen at the end of the year and at the end of the financial year.
Graphics Source: NavJivanIndia | VaskarAssets
