Leading automakers in the country, Maruti Suzuki and Hyundai have announced price hike which will come into effect from January 2014. Other auto makers such as Mercedes, BMW, Audi and Honda have also announced price increases. Mahindra and Volkswagen have done the same and more automakers are expected to follow suit and will be making similar announcements in due course.
Rakesh Srivastava, Sr. Vice President, Sales and Marketing said, “In these adverse market conditions there is continuous increase in input costs on account of rupee depreciation and inflationary trends, this has made the price increase inevitable. We have been absorbing most of the costs but now we are compelled to consider the price increase. The quantum of price increase will vary from Rs. 5,000/- to Rs. 20,000/- across all our models.”
Automakers have cited depreciation of the rupee and rising input costs which have been steadily increasing and while the companies have been absorbing these for the past few months, they have now decided to pass on a part of this burden to customers.
Maruti Suzuki will be hiking prices by upto INR 10,000 across range, while Hyundai Motors is also planning similar price hikes. Mercedes Benz, on the other hand, which had announced price hikes earlier, will be increasing prices on all product across models by upto 10%.