In a bid to mitigate rising input cost, inflation and supply chain disruptions, auto manufacturers have decided to undertake car price hike, including electric vehicles by 2-4 per cent from January 1, 2025.
Auto major Tata Motors has said that it will increase the prices of its passenger vehicles from January 2025.
“Tata Motors will take a price increase of up to 3 per cent across its passenger vehicles portfolio, including EVs. Effective January 2025, the price increase will vary depending on model and variant and is being taken to partially offset the rise in input costs and inflation,” the company said in a statement.
In a regulatory filing, Hyundai Motor India, said that it will increase prices across its model range effective from January 1, 2025. “The price increase has been necessitated owing to an increase in input costs, adverse exchange rate and increase in logistics costs,” it said.
Commenting on the development, Tarun Garg, Whole-time Director and Chief Operating Officer, HMIL, said, “At Hyundai Motor India, our endeavour is always to absorb rising costs to the extent possible, ensuring minimal impact on our customers. However, with the sustained increase in input cost, it has now become imperative to pass on a part of this cost escalation through a minor price adjustment.”
He further said that this price increase will be done across models and the extent of increase will be up to Rs 25,000. “The price increase will be effective from January 1, 2025 on all MY25 models,” Garg added.
In another release, premium car maker Kia India has announced up to 2 per cent price hike across its entire lineup, The price hike, effective from January 1, 2025, is primarily due to rising commodity prices and escalating supply chain-related costs.
“At Kia, we are committed to delivering exceptional, technologically advanced vehicles of the highest quality to our valued customers. However, due to the persistent rise in commodity prices, unfavorable exchange rates, and increased input costs, a necessary price adjustment has become unavoidable,” Hardeep Singh Brar, Sr. Vice President, – Sales and Marketing, Kia India said.
He further said that despite these challenges, Kia is absorbing a significant portion of the cost increase, minimising the financial impact on the customers.
Kia has sold 1.6 million units in India and overseas markets combined to date. Its best-selling innovation, Seltos, has surpassed 670,000-unit sales, followed by Sonet with over 480,000 units, Carens with 214,400 units and Carnival with over 15,000 units.
Similarly, Maruti Suzuki has also intimated a price increase of around 4 per cent from January next year.
“In light of rising input costs and operational expenses, the company has planned to increase the prices of its cars from January 2025. The price increase is expected to be up to 4 per cent and will vary depending on the model. While the company continuously strives to optimise costs and minimise the impact on its customers, some portion of the increased cost may need to be passed on to the market,” the company said in a statement.
