In a move impacting the Indian automotive market, Hyundai Motor India announced a price increase across its entire model range on Thursday. The decision aligns the company with several other car manufacturers who have recently adjusted their prices upwards, citing pressures from rising input costs.
Hyundai Cites Rising Costs for Price Adjustment
Hyundai confirmed an average price hike of 0.6% for all its models, effective immediately from Thursday. The company attributed this decision to the increased cost of metals and other essential commodities. In an official press release, Hyundai stated that while it continuously works to optimise costs and shield customers, it is now compelled to pass on a portion of the increased expenses to the market. The brand described the increase as "minor."
Maruti Suzuki Adopts a Wait-and-Watch Stance
In contrast to Hyundai's immediate action, the country's market leader, Maruti Suzuki, has chosen to pause. Partho Banerjee, Senior Executive Officer for Marketing and Sales at Maruti Suzuki, stated that the company's current prices will remain valid for the next 15 to 20 days. He indicated that a crucial decision is pending on whether to revert to prices based solely on the reduced GST rates or to continue with the brand's strategic pricing, which involved reducing prices beyond the benefit of the GST cut.
A Wave of Price Hits the Auto Industry
The trend of increasing car prices is not limited to mass-market players. The luxury car segment has already witnessed sharper corrections. BMW India implemented a significant 6% price increase from January 1, 2024, pointing to prolonged foreign exchange pressure and higher costs for raw materials and logistics. Its rival, Mercedes-Benz India, has also raised prices by up to 2% across its product portfolio.
According to industry reports, several other prominent automakers have followed suit:
- Renault has increased prices by up to 2% on its models.
- Nissan has raised vehicle prices by up to 3%.
- MG Motor has rolled out price hikes of up to 2% across its petrol, diesel, and electric vehicle lineup.
This collective move underscores the widespread impact of inflationary pressures on manufacturing costs within the Indian automobile sector, signaling potentially higher costs for new car buyers in the near term.
