From January, cars will be costlier, including models from the country’s largest manufacturer Maruti Suzuki India (MSIL), General Motors (GM) India, Toyota Kirloskar Motor, Volkswagen India, Audi India and BMW India.
The automobile sector has been facing increasing pressure on margins, added by currency fluctuations.
“There will be a hike in the prices of our products. The quantum of hike will vary depending on models, but it can be up to Rs 20,000,” said Mayank Pareek, Chief Operating Officer (Marketing and Sales), MSIL.
GM India and Toyota Kirloskar said they will increase prices by one-three per cent and one-two per cent, respectively, across models.
“We will increase product prices in January across all carlines ranging from one to three per cent depending upon models owing to currency fluctuation and hike in input costs,” P. Balendran, Vice President, GM India, said in a statement.
Other manufacturers such as Honda Cars India and Volkswagen India are also considering price hike from January. However, both the companies are still working out the numbers.
“It is still being worked out and most likely the price increase would be on Brio and the City,” a Honda Cars India spokesperson told Business Line.
German luxury car manufacturers Audi and BMW have already announced a price increase from January.
While Audi had said it would raise prices of its entire range by up to five per cent, BMW cars will be dearer by up to 10 per cent.
Audi sells cars in the price range between Rs 28 lakh and Rs 1.3 crore, and BMW’s price range is between Rs 24 lakh and Rs 88 lakh.
The number three-ranked Mercedes is yet to announce a hike. When contacted, a company spokesperson said it can ‘comment later, post-discussion’.
After a decline in sales over the past few months, the companies expect to close the year with better sales by announcing a price increase from January.