Rising car prices: Here’s how automakers are revising the prices of their top brands
Several automakers have raised the prices of their cars due to rising entry costs from April 2022. This is the second time the auto sector has seen a price increase this year, the first rise taking place in early January. Factors like the Russian-Ukrainian war and the resurgence of the Covid-19 wave in China, the UK and the US also play a significant role in disrupting the supply of parts and materials.
Automakers like Maruti Suzuki, Kia, Tata Motors, MG Motor, Hyundai and Toyota among others have increased the cost of their respective cars in India with many companies delaying the delivery of their vehicles for months due to the increase in demand.
Some car manufacturers also have to limit their offers due to the constraints of the limited supply of parts in the market. Manufacturers like MG and Hyundai, which have also increased the cost of several vehicles in their lineup, have also dropped some variants and features to meet demand.
With the cost of sourcing materials continuing to rise and the unstable geopolitical situation, many builders – who have already implemented a price hike this month – may be forced to raise prices again. vehicles.
Here’s why automakers need to increase their vehicle costs and by how much:
Maruti Suzuki, which has already raised the price of its vehicles four times in the past year and up to 8.8% from January 2021, had recently announced that it would raise the prices of the package again of its model lineup this month due to increased inputs. costs.
The automaker, in a regulatory filing, said that over the past year the cost of the company’s vehicles has continued to be negatively affected due to an increase in the costs of various inputs, “By Therefore, it has become imperative for the company to pass on some impact of the above additional costs to customers through increased pricing.”
The company planned to raise the cost of its cars in April but did not disclose the amount of the proposed price hike.
Kia India has also raised prices across its entire range from April this year. This includes the Seltos, Sonet, Carnival and even the Carens which launched in March 2022.
Kia India’s rise comes as the company posted its best March sales of 22,622 units. This is an increase of 18.44% in March 2021 and 24.84% from February 2022. The company has raised the price of its cars up to 70,000 rupees.
Toyota, on the other hand, raised prices by up to 4%, making it its second price hike in 2022 after January. The company has increased the prices of its entire line, which are the new Glanza, Urban Cruiser, Innova Crysta, Fortuner and others.
Toyota has raised the prices of its cars up to Rs 1.20 lakh.
While a car’s price increase is usually based on model and variant, Tata Motors has managed to achieve a uniform price increase across its selected models. The company has increased the prices of its cars like Altroz diesel and petrol variants, Tata Harrier, Nexon diesel and petrol variants, Punch, Tiago, Tigor and Safari. All these cars are now more expensive by Rs 3,000. On top of that, the last time Tata Motors raised the prices of its cars was, like other manufacturers, in January 2022.
MG Motor, which entered the Indian market in July 2019, offers premium cars like Hector, Gloster and Astor at competitive prices. However, due to rising input costs, the has made key changes to its lineup. Apart from revising the prices of its SUV lineup, the two lower variants of the company’s Astor mid-size SUV are currently not available for reservation.
With this temporary halt to reservations for the Style and Super variants, the price of admission to the Astor has increased significantly. The base Style trim, which was priced at Rs 9.98 lakh, now costs nearly Rs 13.28 lakh and goes up to Rs 17.72 lakh for the top-end variant. Apart from this, MG has also increased the prices of Hector, Hector Plus and Gloster SUVs up to Rs 50,000 depending on the models and variants.
Hyundai India, on the other hand, had updated the prices of its Creta SUV up to Rs 5,000 and also dropped the SX petrol-automatic and SX Dual Tone petrol-automatic variants. It should be noted that Hyundai might not bring back its discontinued versions as the company has already introduced new variants as replacements and is expected to work on the facelift of the new Creta as well.
BMW India had said it would raise prices for its models nationwide by up to 3.5% from April 1, to adjust material and logistics costs, currency exchange rates and the impact of the current geopolitical situation.
The company’s Indian range includes 2 Series Gran Coupe, 3 Series, 3 Series Gran Limousine, 5 Series, X1, X3 and others. Interestingly, there are no updates regarding the price revision of BMW-owned Mini cars.
Mercedes Benz India
Mercedes-Benz India had also announced a price increase for all of its offerings in the country from April 1. The luxury automaker said the impending price correction would be around 3% across all of its models, which includes A-Class Limousine, E-Class, CLS, S-Class, GLC, GLE and GLS, among others.
Audi India said it has raised prices for its vehicles in India from April 1. “The price increase is the result of rising input costs and will take effect from April 1, 2022,” the luxury automaker said. In January, Audi raised its prices by 3%.