Buying a car in the new year will be expensive, Tata Motors, Honda and Renault may also increase the price
Automakers like Tata Motors, Honda and Renault are looking to increase the prices of their vehicles from the new year i.e. January, amid increase in the cost of production. Market leader Maruti Suzuki and luxury car makers Audi and Mercedes-Benz have already announced price hikes for their vehicles from next month.
Maruti has said that the prices of its vehicles will increase from January 2022. The price hike will be different for different models. Mercedes-Benz has said that the prices of select models will increase by up to two percent. Audi, on the other hand, has announced a price hike of up to three percent for its entire model range with effect from January 1, 2022.
When contacted about the price hike, Tata Motors President (Passenger Vehicle Business) Shailesh Chandra said, “Commodity prices, raw material and other costs continue to rise. A reasonable increase in prices in the near future cannot be avoided to partially offset the impact of this increase in cost.
Tata Motors sells vehicles like Punch, Nexon and Harrier in the domestic market. Meanwhile, Honda Cars India has also said that it is looking at increasing the prices in the near future. A company spokesperson said, “The cost of production has been severely impacted due to increase in commodity prices. We are still studying how much of this load can be carried by ourselves.”
The company, which sells brands like City and Amaze, had increased the prices of its vehicles in August this year as well. At the same time, Renault has also said that it is looking at a “substantial” price hike in its vehicle range from January. The French company sells models like Kwid, Triber and Chiger in the Indian market.
The steep rise in prices of essential commodities like steel, aluminium, copper, plastics and precious metals in the last one year has forced auto companies to take steps to increase prices. Apart from this, the cost of transportation has also increased in recent months, which has affected the auto companies.
