The automobile manufacturers, including Maruti Suzuki, Mahindra & Mahindra, Tata Motors, Bajaj Auto, Hero MotorCorp, among others have recently announced an increase in the prices of their vehicles across segments from January 2021.
This price hike was primarily on the back of rising input costs, increasing commodity prices and exchange rate fluctuations.
"There has been almost a 30 percent increase in costs and we look at another one in January. It is a severe cost increase for the acquisition of a 2-wheeler. It’s a scramble and consumers get affected very badly. This situation is likely to last for 4-6 months," Rakesh Sharma, executive director of Bajaj Auto told CNBC-TV18.
Here are the companies that have announced price hikes:
German luxury carmaker will increase prices of its entire model range in India by up to 2 percent from the next month. The automaker will introduce the revised pricing for all BMW and MINI models effective January 4, 2021.
Prices will increase by up to 2 percent across the portfolio, it said.
"In an unprecedented year, the company has been focused on providing best-in-class products and unparalleled services to its esteemed clientele. From January 4, 2021, BMW Group India will introduce the new pricing for BMW and MINI portfolio, increasing the prices marginally by up to 2 percent to offset the increasing input costs," BMW Group India president Vikram Pawah said.
Isuzu Motors India
Utility vehicle maker said it will hike prices of its pick-up range - D-MAX Regular Cab and D-MAX S-CAB - from January 1 to offset increasing input and distribution costs.
The price increase is expected to be approximately Rs 10,000 from the current ex-showroom price, the company said.
Isuzu Motors India currently sells its D-MAX Regular Cab with prices starting from Rs 8.64 lakh and D-MAX S-CAB with starting price of Rs 10.62 lakh (ex-showroom Mumbai).
"The increase in price is due to the increasing input and distribution costs," the company said in the statement.
Japanese auto major plans to increase vehicle prices in India from next month and company dealers have been informed about the decision.
The automaker, which is present in the country through a wholly-owned subsidiary Honda Cars India Ltd (HCIL), sells a range of vehicles starting from compact sedan Amaze going up to premium SUV CR-V.
Amaze prices currently start from Rs 6.17 lakh while the entry level CR-V is tagged at Rs 28.71 lakh (ex-showroom Delhi).
Automaker Renault India on Friday said it will increase price of its entire model range by up to Rs 28,000 from next month.
The company, which sells models like Kwid, Duster and Triber, said the price hike from January would vary across variants and products.
"The price increase is a result of the steadily increasing input costs across the spectrum, including input costs for steel, aluminium, plastics and other affiliated cost increases during the pandemic," Renault India said in a statement.
MG Motor India
MG Motor India said it will introduce a seven-seater version of its Hector Plus model next month.
In a statement, MG Motor India said it would "undertake a price revision across its product range in view of the miscellaneous cost increase. The price hike will range up to 3 percent, depending on the model and will be applicable from January 1, 2021".
MG Motor currently retails three models in India namely Hector, ZS EV and Gloster, which are priced between Rs 12.83 lakh and Rs 35.6 lakh.
Mahindra & Mahindra
Mahindra & Mahindra (M&M) will hike prices of its range of tractors from next month in order to partially offset the impact of rise in input costs.
This has been necessitated due to the increase in commodity prices and various other input costs, the company added. Details of price increase across different models will be communicated in due course, M&M said.
M&M had also announced that it will hike prices of its entire range of passenger and commercial vehicles from next month in order to partially offset the impact of rise in input costs.
The country's largest passenger car maker was among the earliest to announce the hike in prices. The carmaker will increase prices of its vehicles from January to offset the adverse impact of rising input costs.
Tata Motors announced that there will be a price increase across its commercial vehicle range, effective January 01, 2021.
"The steady rise in material and other input costs, impact of forex and transition to BS6 norms, have cumulatively escalated the cost of manufacturing vehicles. The company had thus far been absorbing the addition in costs but with their steady rise in line with market trend, it has become imperative to pass at least some portion of the cost increase to customers via appropriate price revisions," it said.
The price increase is expected across the portfolio of M&HCV, l&LCV, SCV & Buses. The actual change in price will depend on individual model, variant and fuel type.
The two and three-wheeler maker has already increased prices of its KTM and Husqvarna motorcycles in India. This includes models like the 250 Duke, RC 390 and the 390 Adventure. Prices of Platina and Pulsar have also been hiked.
The world’s largest two-wheeler maker has also announced a price hike up to Rs 1,500 effective January 1, 2021.
(Edited by : Jomy)
First Published: IST