Insider Look: Why car prices are increasing from january?

Car manufacturers like MG Motor India, Mahindra and Mahindra, Tata Motors, Audi India, Maruti Suzuki, Hyundai, Citroen, and Honda have announced plans to raise car prices starting January 2024. The anticipated price hikes across all models are estimated to range between 2.5 to 3 percent of their ex-showroom prices.

The surge in commodity prices, particularly steel, coupled with overall inflation, is cited as the primary reason for the escalating costs in the automobile industry. Let’s delve deeper into the statements of these carmakers regarding the forthcoming price hikes.

Maruti Suzuki

Maruti Suzuki was among the first brands to announce a price hike across both its Arena and Nexa offerings, effective from 2024. According to the automaker, the escalation in commodity prices and overall inflation has led to increased input costs, prompting the price adjustment. However, Maruti has yet to disclose the extent of the price hike.

Maruti currently offers a total of 17 models, encompassing both Arena and Nexa offerings. The lineup includes the Alto, Baleno, Brezza, Celerio, Ciaz, Dzire, Eeco, Ertiga, Grand Vitara, Ignis, S Presso, Swift, Wagon R, XL6, Fronx, Invicto and the Jimmy.

Audi

The German luxury automaker Audi is poised to implement a uniform 2 percent price hike across its model range starting from January 2024. The primary reasons cited for this decision are the escalating input and operational costs.

In India, Audi sells a total of 15 models, 4 of which are EVs. The company’s current lineup includes the A4, A6, A8 L sedans, Q3, Q3 Sportback, Q5, Q7, Q8 SUVs, the S5 Sportback sportscar, and the Q8 e-tron, Q8 Sportback e-tron and the e-tron GT electric cars.

Hyundai

Hyundai has confirmed its intention to raise car prices from January 2024, attributing the decision to escalating input costs, adverse exchange rates, and increasing commodity prices. Hyundai’s current lineup in India comprises 13 models, featuring two EVs: the Kona EV and Ioniq 5.

The brand currently offers the Alcazar, Aura, Creta, Exter, Grand i10 Nios, i20, Ioniq 5 , Kona electric, Venue, Verna and Tucson in India.

Tata

Tata Motors has also declared its intention to increase the prices of its models starting January 2024. However, the Indian marque has not yet disclosed the specific model-wise extent of the price hike.

Tata’s current car lineup comprises 10 models, including 3 EVs. The brand currently offers the Altroz, Harrier, Nexon, Nexon EV, Punch, Safari, Tiago, Tiago EV, Tigor and the Tigor EV.

Mahindra

Honda India has announced its intention to increase prices for all four-wheelers starting January 2024, citing escalating production costs. The company has yet to specify the exact amount by which prices will rise but has indicated that they will disclose these details by the end of the month.

Honda’s current lineup in India comprises three models: XUV300, XUV700, Bolero, Bolero Neo, Scorpio N, Scorpio Classic, Marazzo, Thar and the XUV400 EV.

Honda

Honda India has announced a forthcoming price hike for all four-wheelers starting January 2024, citing escalating production costs. The company hasn’t specified the exact amount by which prices will increase but has committed to revealing these details by month’s end.

Honda’s current lineup in India comprises three models: the Honda City (both in petrol and hybrid), Honda Amaze, and Honda Elevate.

Volkswagen

The German automaker Volkswagen is set to raise the prices of its models by up to 2 percent, starting January 2024. Volkswagen attributes this impending hike to the escalating input and material costs.

In India, Volkswagen offers three models: Virtus, Taigun, and Tiguan.

MG Motor India

MG has recently announced its intention to increase prices across all models from January 2024, attributing this decision to escalating production costs. However, the company has not disclosed the exact details of the price hike. In the country, MG sells the Comet EV, ZS EV, Hector, Astor and the Gloster in the country.

BMW

BMW India has confirmed an upcoming price increase of up to 2 percent for its cars, effective January 2024. This hike will apply across the entire range, including the new BMW i7 electric sedan. The carmaker attributes these changes to fluctuations in exchange rates and rising input costs.

BMW’s current lineup in India comprises 21 models, including 4 EVs. The brand’s offerings include the 2 Series Gran Coupe, 3 Series Gran Limousine, M 340i, 5 Series, 6 Series, 7 Series, X1, X3, X5, X7, Z4, M4 Coupe, X3 M40i, X4 M40i, M5, M8 Coupe, XM, iX1, i4, i7 and iX on sale in India.

Citroen

Citroen India has announced its intention to raise prices across its model range starting January 1, 2024. The company attributes this hike to various market factors and anticipates a range between 2.5-3 percent. The brand currently offers the C3, eC3, C3 Aircross and the C5 Aircross on sale in India.

Skoda

Skoda currently has 3 models available for sale in India: the Slavia sedan, Kushaq, and Kodiaq SUVs. The company has announced its decision to increase the prices of these models by 2 percent starting from January 1, 2024, attributing the hike to the rising cost of commodities.

Mercedes-Benz

The luxury carmaker Mercedes-Benz has declared a price hike of up to 2 percent for select models starting January 1, 2024. Although the company hasn’t specified the models receiving the price increase, it indicated the range to be from Rs. 2.6 lakhs for the GLS SUV to Rs. 3.4 lakhs for the top-end Mercedes-Maybach S 680.