After Maruti Suzuki and Hyundai, Tata Motors, Kia India and JSW MG Motor India have also announced to increase the prices of their vehicles. The new rates will come into effect from January 2025.
All automakers cited almost the same reason for the price increase. Companies are making such a decision due to increasing costs of inputs and logistics.
Before this, other automakers like Maruti Suzuki, Hyundai Motor India, Mahindra & Mahindra, Mercedes-Benz, BMW and Audi have also announced an increase in prices of their vehicles from January 2025.
Every year in December, companies increase car prices.
Tata vehicles will become more expensive by 3%. Tata Motors will increase prices of its passenger vehicles by 3% from next month. This includes petrol, diesel and electric models. The company said in a statement that it would increase vehicle prices to partially reduce the impact of rising raw material costs and inflation. The new prices will be effective from January 2025 and the increase will vary depending on the model and its version.
Tata Motors’ current model range includes Tiago and Altroz in the compact sedan segment, Tigor in the compact sedan segment, Punch in the micro SUV segment, Tata Nexon in the compact SUV segment, Harrier and Safari in the high-end SUV segment. Additionally, the brand offers the Tata Curve, a coupe SUV, which was recently launched in the country.
In the electric vehicle category, the company owns Curve EV, Punch EV, Nexon EV, Tiago EV and Tigor EV. The company is currently preparing to launch the Sierra EV.
JSW MG Motors India will increase prices of all its models by 3% from January. The company said the price increase is due to the continued increase in the cost of auto parts, the impact of the exchange rate and increased logistics expenses.
Kia cars will be 2% more expensive. Leading premium car maker Kia India has announced a 2% increase in prices of all its models. The new tariffs will be applicable from January 1, 2025. The company said the price hike was due to rising raw material prices and rising supply chain costs.
Prices of Hyundai cars will increase by up to ₹25,000. Hyundai Motor India Limited (HMIL) has announced an increase in prices of all its models by up to ₹25,000. The new prices will be applicable from January 1. The reason for the increase in prices is the increase in input costs. HMIL said in the release that the price increase will be on a per-variant basis across all models and will be increased up to a maximum of Rs 25,000.
Maruti Suzuki cars have become more expensive by 4%. Maruti Suzuki said that due to rising cost of raw materials and increase in operating costs, prices of cars will increase from January 2025. The price increase may be up to 4% and will vary by model. Although the Company continually strives to optimize its costs and minimize the impact on its customers, a portion of the increased costs may need to be passed on to the market.
Mahindra & Mahindra vehicles will also become more expensive by 3%. The company will increase the prices of the entire range of sports utility vehicles (SUVs) and commercial vehicles (CVs) included in its portfolio by 3%. Mahindra & Mahindra said in an exchange filing on Friday (December 6) that the increase in tariffs on vehicles would come into effect from early January 2025. The company took the decision due to rising costs due to the inflation and rising commodity prices.
2 reasons why prices increase every year
Automakers cite costlier components, input costs and increased business operating expenses as the main reasons for the price hike starting in January. However, industry experts say automakers announce price increases in December so that people buy vehicles before the New Year. Otherwise, due to the fear of a price hike in the new year, customers delay purchasing a car. In addition, companies must also sell off last year’s manufacturing stocks. If customers do not purchase the vehicle in the last few months of the year, the vehicle’s manufacturing appears to be a year old in the new year. This is why companies are also offering more deals on cars. This trend is especially observed at the end of the year and at the end of the financial year.