Carmakers like Honda, Tata Motors, and Renault are planning to hike vehicle prices from January next year to offset the impact of rising input costs.
Other automakers such as Maruti Suzuki, Audi and Mercedes-Benz have already announced to increase vehicle prices from next month.
Where Maruti said the price rise, which is planned for January 2022, will differ for different models, Mercedes-Benz stated that the hike will be on select models by up to 2% due to rising input costs and feature enhancement.
Meanwhile, Audi said its price increase, effective January 1, 2022, will be up to 3% across its overall model range due to rising input as well as operational costs.
"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," said Shailesh Chandra, president, passenger vehicles business unit, Tata Motors.
The company sells models like 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 brands like City and Amaze had last hiked the vehicle prices in August this year.
Renault stated that it is also looking at a "substantial" price increase across its vehicle range from January.
The French company sells models like Kwid, Triber and Kiger in the Indian market.
The companies have been forced to take price hike, with substantial increase in prices of essential commodities like steel, aluminium, copper, plastic and precious metals over the last one year.
Besides, transportation cost has gone up in recent times affecting the total cost structures of original equipment manufacturers (OEMs).
(With inputs from PTI.)
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today