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Honda, Tata Motors and Renault considering raising prices beginning next month

 



With input costs continuing to rise, automakers are looking to increase vehicle prices from January next year. Already, car market leader Maruti Suzuki and luxury automakers Audi and Mercedes-Benz have announced to hike vehicle prices. The price rise planned for January 2022 will vary for different models.
Mercedes-Benz said its hike will be on select models by up to 2 percent due to feature enhancement and rising input costs. Audi, on the other hand, announced a price hike of up to 3% across its whole model lineup beginning January 1, 2022, due to growing input and operating expenses.
When contacted over the issue, Tata Motors President Passenger Vehicles Business Shailesh Chandra said: “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.
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 has also announced that it is planning a "substantial” price rise throughout its car lineup beginning in January. The French company sells models like Kwid, Triber, and Kiger in the Indian market.
Companies have been obliged to raise prices due to a significant increase in the cost of vital commodities such as steel, aluminum, copper, plastic, and precious metals during the previous year.
Furthermore, shipping costs have risen in recent years, influencing the total cost structures of Original Equipment Manufacturers (OEMs).
Source: MoneyControl

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