Automakers like Maruti, M&M Increase Prices Across Their Vehicles, Find Out Why

The price of Maruti vehicles is estimated to climb by up to 4 per cent, while M&M and JSW MG Motor vehicles are expected to see a hike in the prices by up to 3 per cent

These new prices will come into effect starting January 2025.

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Automakers are trying to manage the rising input costs by increasing the prices of their vehicles. Maruti Suzuki India (MSIL), Mahindra & Mahindra (M&M), and JSW MG Motor joined the list of such carmakers and recently hiked up the prices across their model range.

This decision was undertaken in an attempt to pass over some of the burden of input costs to consumers, reported Business Standard. The price of Maruti vehicles is estimated to climb by up to 4 per cent, while M&M and JSW MG Motor vehicles are expected to see a hike in the prices by up to 3 per cent.

These new prices will come into effect starting January 2025. The auto industry has been struggling with an increase in expenses across crucial components and commodities. The prices of raw materials such as zinc, rubber, and aluminium have surged along with a rise in logistical expenses.

Bloomberg data recently revealed that aluminium prices climbed 10.6 per cent on a year-on-year (YoY) basis, while rubber prices jumped 26.8 per cent. These price gains majorly added to the elevated production costs.

Further, a disturbance in the global shipping routes, specifically along the Red Sea, resulted in container rates soaring in 2024, in comparison to the year-ago period. 

Maruti Suzuki announced the price rise to the BSE in an official filing. “While the company continuously strives to optimise costs and minimise the impact on its customers, some portion of the increased cost may need to be passed on to the market,” the filing noted.

JSW MG also explained that this gain in prices was attributed to the consistently elevated input costs and other external factors. M&M announced a hike in the price of its SUV and commercial vehicles range as well.