Tata Motors, Honda Reflects Next Month’s Price Hike, Auto News, ET Auto

New Delhi: With input costs continuing to rise, automakers like Tata Motors, Honda and Renault are looking to raise vehicle prices from January next year to offset the impact. Already, car market leader Maruti Suzuki and luxury automakers Audi and Mercedes-Benz have announced vehicle price increases starting next month.

While Maruti said the price hike slated for January 2022 will vary by model, Mercedes-Benz said its hike will be for some models up to 2% due to improved functionality and increased costs. inputs.

On the other hand, Audi has said that its price increase from January 1, 2022 will reach 3% across its entire model lineup due to increased entry and operating costs.

When contacted about this, Shailesh Chandra, President of the Passenger Vehicle Company of Tata Motors, said, “The prices of commodities, raw materials and other inputs continue to rise. A price increase appropriate to at least partially offset this increase in costs seems inevitable in the near future. short term.”

The company sells models such as Punch, Nexon and Harrier in the domestic market.

Honda Cars India has also said it is considering a price hike in the near future.

“There is a severe impact on the cost of inputs due to the increase in the prices of raw materials. We are still studying how much can be absorbed,” a spokesperson for the company noted.

The maker of brands like City and Amaze last raised vehicle prices in August this year.

Renault has said it is also considering a “substantial” price increase across its range of vehicles from January.

The French company sells models like Kwid, Triber and Kiger in the Indian market.

Companies have been forced to raise their prices, with the prices of essential commodities like steel, aluminum, copper, plastics and precious metals rising substantially over the past year.

In addition, transportation costs have increased in recent times, affecting the total cost structures of original equipment manufacturers (OEMs).

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Annoyed by the rampant cost of inputs and the shortage of semiconductors, auto OEMs say they are being pushed to their limits and that rising product prices are the only way out. However, fearing the resistance of the market mutilated by the pandemic, they are reluctant to take the step of rising prices. Still clear indications at the ETAuto 2021 Virtual Connected Vehicle Summit are that consumers will be greeted with yet another price hike in the new year.

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