Planning To Buy A Car? Prices Set To Increase Across Automakers In April

Maruti Suzuki India, the country’s top passenger car manufacturer, announced that it would increase prices across its entire lineup by up to 4 per cent from April.

Car buyers in India will soon have to pay more, as leading automakers plan to raise vehicle prices starting April 2025. Automakers such as Maruti Suzuki, Mahindra & Mahindra, Hyundai, and others have cited increasing input costs and operational expenses as key reasons for the price hike.

Maruti Suzuki India, the country’s top passenger car manufacturer, announced that it would increase prices across its entire lineup by up to 4 per cent from April. The company, which sells models ranging from the Alto K-10 to the premium Invicto, currently offers vehicles priced between Rs 4.23 lakh and Rs 29.22 lakh (ex-showroom, Delhi), reported PTI.

Hyundai Motor India also confirmed a price increase of up to 3 per cent due to rising costs of raw materials and operations. Similarly, Tata Motors plans to raise prices for its passenger vehicles, including electric models, marking the second such hike this year.

Mahindra & Mahindra also decided to revise the prices of its SUVs and commercial vehicles by up to 3 per cent. Other automakers such as Kia India, Honda Cars India, Renault India, and BMW have announced similar hikes effective next month.

Factors Driving the Price Hike

Industry experts believe that automakers generally adjust prices twice a year—once at the beginning of the calendar year and again at the start of the financial year.

Deloitte Partner & Automotive Sector Leader, Rajat Mahajan explained, “The reason for the extent of hike varies, could be related to currency fluctuations where we need more rupees to import the same product, commodity or component.”

Over the past six months, the US dollar has strengthened by nearly 3 per cent against the rupee, affecting cost structures, particularly for categories that rely heavily on imports. Original equipment manufacturers (OEMs) relying on complete knockdown (CKD) units are expected to face even greater cost pressures.

In addition, subdued demand for entry-level vehicles, particularly among first-time buyers and rural consumers, has squeezed profit margins. Mahajan explained that while premium segments have lower price sensitivity, allowing price hikes to improve margins, manufacturers remain cautious about passing on higher costs in the entry-level segment.

Mahajan also noted that increasing vehicle features have contributed to regular price adjustments over recent quarters. However, automakers are mindful of price sensitivity, especially in the budget segment. With the latest budget leaving consumers with more disposable income, companies may exercise caution in implementing price hikes.

Icra Corporate Ratings VP and Sector Head, Rohan Kanwar Gupta, echoed similar views. “The price hikes are generally taken at the start of the calendar/fiscal year to help offset factors like increases in operational costs on account of inflationary pressures and commodity prices, among others," he noted.

He added that while higher prices could slightly impact demand sentiment, the market is already offering substantial discounts on multiple models to reduce inventory. As a result, the overall effect of these price increases on demand is expected to be limited.

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