Automakers Reveal Car Prices To Increase In India From April

Synopsis – The companies have also been burdened with rising freight and fuel cost. Along with this, the rising prices of diesel have led to an increase in the transportation and infrastructure cost of companies, thus these have also become some of the factors due to which prices are increasing. 

Automakers in India revealed that the prices of all the cars will increase from April. This will be the second hike since the month of January and as per companies they had to do this due to the rising cost of metal and spare parts along with the global shortage of supplies. Many companies including, Maruti Suzuki, Toyota, Volvo, etc, have announced the price hike and said that they may rise up to 4 percent. Some of the luxury car brands such as Audi India and Mercedes-Benz India have also announced that there will be a hike in the price which will be effective from April 1st, 2022. 

One of the biggest car manufacturers in India, Maruti Suzuki announced that there will be a hike in prices in various models and variants and they also said, 

Over the past year, the cost of the company’s vehicles has been impacted adversely due to an increase in various input costs. Hence, it has become imperative for the company to pass some impact of the additional cost to customers through a price increase in April.

Apart from this, the companies have also been burdened with rising freight and fuel cost. Along with this, the rising prices of diesel have led to an increase in the transportation and infrastructure cost of companies, thus these have also become some of the factors due to which prices are increasing. 

Nissan, while increasing the prices of SUV Magnite, got a very strong response to which Nissan India MD Rakesh Srivastava said,

There has been a continuous escalation in auto component prices, and we have tried to absorb this escalation over the last few months. We are now constrained to increase prices (and) the increase varies from variant to variant.

Toyota was also on the list of companies that announced the rise in the prices of automobiles. The Japanese company said that the same is being done due to a rise in the input cost along with the raw material and this is the standard reason for every company which is about the company in the price hike. Also, in a statement, the company said, 

Toyota Kirloskar Motor (TKM) today announced that the company will realign the prices of its models, by up to 4% effective from 1st April 2022. This hike has resulted due to the rising input cost, including that of raw materials. As a committed & customer-centric company, TKM has made all conscious efforts to minimize the impact of rising costs on consumers.

The prices are also being affected due to the ongoing war between Russia and Ukraine. However this cannot be stated as the major reason, but yes the war has a part to play. By the second half of 2021, the prices of many raw materials have increased, including platinum by 13%, palladium by 38%, rubber by 28%, rhodium by 35%, and copper by 15%.