Increasing input costs have forced carmakers to increase prices from January 1, which will enhance the sales in December. Hyundai and General Motors have already announced price hikes. And others such, Mahindra & Mahindra, Toyota Kirloskar Motors, and Ford are all set to follow suit.
“We are forced to go for the increase in the range of 1.5-2 % as major inputs like steel, rubber and other metals have shown an upsurge in the past few months,” Hyundai Motor India spokesman said.
General Motors India will increase its car prices by 3%. While natural rubber prices have doubled in recent months, copper prices have soared by nearly 15% in the past few months.
“We have been absorbing rising input costs by enhancing our operational efficiencies. But now we have to pass them on to consumers,” said Mayank Pareek, executive officer (marketing & sales), Maruti.
Tata Motors is also likely to increase the prices in the range of 2-3 % for its passenger vehicles. However, the company does not intend to increase the price of its new launches Nano and Aria, two people familiar with the matter said. “There is indeed an upward pressure on input costs. However, as on date, we cannot provide you with specific guidance on a price increase,” said Tata Motors spokesperson.
The sharp appreciation in the value of the Japanese yen against the US dollar has forced Japanese carmakers like Toyota and Honda to revise their car prices in the Indian market.