Planning to buy a car in 2025? Maruti Suzuki, Hyundai, Mahindra, and others announce price hikes starting January
- The hikes are attributed to surging raw material costs, high import duties, and ongoing supply chain disruptions.
Indian car buyers are bracing for price hikes as several major automakers, including Maruti Suzuki, JSW MG Motor, and Hyundai Motor India, announce plans to increase vehicle prices starting January 2025. According to Reuters, the hikes are attributed to surging raw material costs, high import duties, and ongoing supply chain disruptions.
Maruti Suzuki, India’s largest carmaker, announced it would raise prices by up to 4%, depending on the model. JSW MG Motor, a joint venture between SAIC Motor and JSW Group, plans a price increase of up to 3% across its product lineup. Both hikes will take effect in January.
Hyundai Motor India, the country's second-largest carmaker, confirmed a price increase of up to ₹25,000 ($295) across all models starting January 1.
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Challenges for the Auto Industry
The Indian auto industry is grappling with higher input costs due to inflation, rising global commodity prices, and logistical challenges. After years of strong sales growth, many automakers have also reported cooling demand for new vehicles.
Maruti Suzuki, which has a 42% market share in India, already implemented a 0.45% price increase in January this year. Following its latest announcement, the company's shares rose by as much as 1.7% on Friday before closing 1.2% higher.
JSW MG Motor, which accounts for about 1% of the Indian passenger vehicle market, said the price adjustments are necessary to maintain quality and innovation. “Minor price adjustments are inevitable to offset rising input costs,” said Satinder Singh Bajwa, Chief Commercial Officer of JSW MG Motor India.
Other Automakers Join the Trend
Mahindra & Mahindra (M&M) also announced a price hike of up to 3% for its SUVs and commercial vehicles, citing rising inflation and commodity prices. The company stated it had absorbed some of the additional costs but would pass on a portion to customers starting next year.
Luxury automakers, including Mercedes-Benz, BMW, and Audi, have similarly announced plans to raise vehicle prices in January 2025.
Impact on Car Buyers
The cumulative impact of these price increases could make new vehicles more expensive for Indian buyers. While automakers emphasize their efforts to minimize the impact on customers, rising operational and raw material costs are proving challenging to absorb entirely.
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Business NewsAuto NewsPlanning to buy a car in 2025? Maruti Suzuki, Hyundai, Mahindra, and others announce price hikes starting January
First Published:7 Dec 2024, 07:24 AM IST
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