Buying cars to get expensive from January 2018
In a bid to curb the rising input costs, a number of major car makers in Indian are planning to hike the prices of their cars in India from next month. The major car manufacturers like Maruti, Mahindra & Mahindra, Tata Motors, Volkswagen India and Toyota Kirloskar Motors have already announced their plans to increase the car prices from January 2018. Here are the details of the planned price hike for various automakers in India:
The country's largest car maker, Maruti Suzuki, recently announced its plans to increase the prices of portfolio models by up to 2 percent from January 2018. The company has attributed the rise in the input material costs for this hike. The increase in price will be implemented on company's complete portfolio models starting from small cars such as Maruti Alto to compact crossover SUV S-Cross. However, the quantum of the price-rise will vary for different models and fuel specifications. On the expected price hike, a spokesman of Maruti Suzuki said, "We were absorbing the impact of small fluctuations till now. But with a gradual increase in commodity prices, we will have to pass on the increase to the customers from January. The prices would go up by 2% across the product portfolio from next month."
In a similar announcement last week, the country's leading automobile manufacturer Tata Motors said that the company would be increasing prices of its complete range of passenger vehicles up to Rs 25,000 from the next month. The company has said that the rising input cost is the main reason behind this price hike. Speaking on the price hike, Mayank Pareek, President, Passenger Vehicle Business, Tata Motors, said, "The changing market conditions, rising input costs and various external economic factors have compelled us to consider the price increase.”
Mahindra & Mahindra
One of the country's leading utility vehicle manufacturer, Mahindra & Mahindra also joined the league of car makers who are planning to increase the price of their cars by up to 3 percent from next month. The hike will be effective across the company's portfolio in the Indian market. While commenting on the latest price hike, Mahindra & Mahindra Ltd. President, Automotive Sector, Rajan Wadhera said, "We have been holding back on price hikes and absorbing the higher input costs for a while, but with the increase in commodity prices we will have to consider a price increase."
Joining the league of other major car makers in India, the Indian subsidiary of the Japanese carmaker Nissan announced that vehicles across its two brands Nissan and Datsun will be costlier by up to Rs 15,000. Similar to other car makers, the company has also blamed the rising input and manufacturing costs as the reason behind such a move. "With the rise in input and manufacturing costs, Nissan has decided for a price hike across all Nissan and Datsun models with effect from January 1, 2018," Nissan Motor India Managing Director Jerome Saigot said in a statement.
The German car maker Volkswagen has also announced the plans to increase the car prices by up to Rs 20,000 from next month across its portfolio. In a statement issued in this regard, Volkswagen Passenger Cars Director, Steffen Knapp said, "The price increase is essential on account of several external economic factors as well as fluctuations in the global commodity price and local input cost and is in line with the industry. The impact will be across the entire product range in India."
Toyota Kirloskar Motors
Earlier this month, the Japanese carmaker Toyota had announced its plans to increase the prices of cars by up to 3 percent from next month. A statement from Toyota Kirloskar Motor said, "Toyota has been absorbing the additional costs all this while, protecting the customers from a price increase. However, due to the continued pressure of high costs, Toyota is considering a price increase of up to 3% across models with effect from Jan 2018."
Honda Cars India
Honda Cars India, an Indian subsidiary of the Japanese car maker, has also announced price hike by up to Rs 25,000 from January 1, 2018. "We plan to hike the prices across our models ranging between 1-2 percent from January," a Honda Cars India Ltd (HCIL) spokesperson affirmed.