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After Maruti Suzuki and Hyundai, Tata Motors, Kia India and JSW MG Motor India have also announced to increase the prices of their vehicles. The new prices will come into effect from January 2025.
All the automobile companies have given almost the same reason behind increasing the prices. Companies are taking such a decision due to increase in input costs and logistics.
Before this, other automobile companies like Maruti Suzuki, Hyundai Motor India, Mahindra & Mahindra, Mercedes-Benz, BMW and Audi have also announced increase in the prices of their vehicles from January 2025.
Tata vehicles will become costlier by 3% Tata Motors will increase the prices of its passenger vehicles by up to 3% from next month. This includes petrol, diesel and electric models. The company said in the statement that it is going to increase the prices of vehicles to partially reduce the impact of increase in raw material costs and inflation. The new prices will be effective from January 2025 and the increase will vary depending on the model and its version.
The current model lineup of Tata Motors includes Tiago and Altroz in the hatchback segment, Tigor in the compact sedan segment, Punch in the micro SUV segment, Tata Nexon in the compact SUV segment, Harrier and Safari in the premium SUV segment. Additionally, the brand has the Tata Curve, an SUV coupe, which was recently launched in the country.
In the electric vehicle category, the company has Curve EV, Punch EV, Nexon EV, Tiago EV and Tigor EV. The company is currently preparing to launch Sierra EV.
Mahindra & Mahindra will also increase the prices of vehicles by 3% The company will increase the prices of the entire range of sports utility vehicles (SUV) and commercial vehicles (CV) in its portfolio by up to 3%. Mahindra & Mahindra said in an exchange filing on Friday (December 6) that the increased rates on vehicles will come into effect from the beginning of January 2025. The company has taken this decision due to rising costs due to inflation and rise in commodity prices.
2 reasons for price increase every year
- Car manufacturers cite costlier components, input costs and increase in company operating expenses as the main reasons for implementing the price hike from January. However, industry experts say that auto companies announce price increases in December so that people buy vehicles before the New Year. Otherwise, customers postpone buying a car due to fear of increased prices in the new year.
- Apart from this, companies also have to vacate last year’s manufacturing stock. If the customers do not buy the vehicle in the last months of the year, then in the new year the manufacturing of the vehicle looks one year old. That’s why companies also give more offers on cars. This trend is mostly seen at the end of the year and at the end of the financial year.
