Get ready to spend more while buying a car in the new year as carmakers including Maruti, Hyundai and BMW are increasing prices as a ripple effect of mounting input costs and foreign exchange fluctuations.
Maruti Suzuki India, which sells one in every two cars in the country, will increase prices of its vehicles across models by up to Rs 20,000 from January. Maruti’s move comes a day after Hyundai announced that it will hike prices of its products by up to Rs 30,000 from next month.
“We are looking at increasing prices of all cars across models by Rs 20,000 from January. This has been necessitated due to increase in the valuation of rupee against dollar and other administrative and input costs like electricity etc,” a Maruti Suzuki Ltd spokesperson said.
“In these challenging market conditions, we are constrained to consider the price increase on account of factors like increase in cost of components, weak rupee etc. The proposed price increase of up to Rs 30,000 will be effective from January 2016 across all models, including Elite and Creta,” said Rakesh Srivastava, senior vice-president (sales and marketing), Hyundai Motor India, the country’s second-largest carmaker.
Others like Japanese major Toyota, which operates in India through a joint venture with Kirloskar Motors (Toyota Kirloskar Motors), and German luxury car makers Mercedes Benz and BMW have announced a hike in prices of their vehicles across models from January.
Toyota will hike prices of its vehicles across all models in India by up to 3%. “We have been holding back a price hike and absorbing for a long time, but input costs, electricity, maintenance and foreign exchange fluctuations have increased. Therefore, we have decided to increase prices of our vehicles from January,” said N Raja, director and senior vice-president, sales and marketing, TKM.
The BMW Group, too, has announced a price hike of up to 3% for all models under the BMW and Mini brand currently on sale in India, with effect from January 1, 2016.
“The increase in prices is in continuation of our endeavour to offer the most aspirational and exceptional products to our customers and on adding more value to their overall ownership experience,” said Philipp von Sahr, president, BMW Group India.
A majority the car companies announced a double-digit growth in sales in November, as festive season continued to drive growth. While Maruti Suzuki India reported a 10.6% year-on-year increase in domestic sales during the month to 1,10,599 units, Hyundai India saw its monthly domestic sales rising up 23% to 43,651 units.