Maruti Suzuki India (MSIL), together with Tata Motors, Audi India, and Mercedes-Benz India, announced on Monday that they are considering a price increase beginning in January 2024 due to increased cost pressures caused by overall inflation and high commodity prices.
The company also indicated that, despite its best efforts to minimize costs and offset the increase, it may be forced to pass on some of the cost increase to the market. All Maruti cars, it appears, may face a price increase; however, the carmaker has yet to declare the exact price increase on its models. The price rise is expected to vary depending on the model.
This is the second time that MSIL is increasing the price in the current financial year, the first being in April, when it announced a 0.8% hike on ex-showroom prices of its models.
Tata Motors
Tata Motors, like Maruti Suzuki, has stated that it is considering raising its prices in January 2024.
“We intend to take a price increase for our automotive products effective January 2024,” stated Mahindra and Mahindra CEO (Automotive Division) Nalinikanth Gollagunta.
The M&M CEO stated that further information will be released closer to the event.
Meanwhile, Tata Motors has stated that it intends to raise the cost of its passenger and electric vehicles in January 2024.
Audi
Similarly, due to increased input and operational costs, luxury carmaker Audi India announced a 2% hike across its models. The price increase will take effect on January 1, 2024.
“Due to rising supply-chain-related input and operational costs, we have effected a price correction across our model range, maintaining the brand’s premium price positioning. The price correction aims to ensure sustainable growth for Audi India and our dealer partners, and we will ensure that the price hike’s impact is as minimal as possible for customers,” said Balbir Singh Dhillon, Head of Audi India, in a statement.
Mercedes-Benz India
Mercedes-Benz India also stated that it was considering a price increase beginning January 1, but did not specify the amount.
In October, wholesale dispatches (to dealers) of passenger vehicles remained high, aided by consistent demand and inventory buildup in expectation of strong retails throughout the holiday season.
Domestic wholesale volumes stood at roughly 3.95 lakh units in October 2023, representing a healthy year-on-year gain (nearly 18 percent).
