Carmakers across the board are expected to increase prices in January 2020 between 2 and 8 per cent due to rising input costs
Earlier this month, Maruti Suzuki India Limited (MSIL) announced increase in prices in a regulatory filing citing the rising input costs and it will come into effect from January 2020. It will be implemented across various variants as models such as Alto, Celerio, S-Presso, Wagon R, Swift, Dzire, Vitara Brezza and Ciaz could be affected.
Maruti Suzuki sells a range of vehicles starting priced between Rs 2.89 lakh to Rs 11.47 lakh (ex-showroom, New Delhi). In November 2019, the Indo-Japanese manufacturer reported a YoY drop in volume sales of 3.2 per cent. Hyundai Motor India Limited (HMIL) will also be hiking the prices of its cars due to rising input and material costs.
Currently, the South Korean manufacturer retails as many as twelve models in the domestic market. They include the recently launched Grand i10 Nios and the successfully running Venue compact SUV. Despite the rapid slowdown in the automotive industry, Hyundai’s new models such as the Venue and Nios have helped in the brand enduring good sales numbers compared to other companies.
Both Maruti Suzuki and Hyundai will increase prices by 2-3 per cent. Deputy Managing Director of Toyota Kirloskar Motor (TKM) N Raja expressed his brand’s intentions to hike the pricing as the timeline of January was being discussed. Just as other brands, it will be to offset input costs over the last six months. The price increase is more timed with the market entry of the BSVI models and it could be between 5 and 8 per cent.
Mahindra & Mahindra is also contemplating a price hike during the early stages of January 2020. As part of the revival in sales fortunes, the UV specialists will be launching a slew of new products next year including the second generation Scorpio and Thar and they are expected to be showcased at the 2020 Auto Expo in early February.
At the start of a new calendar year, carmakers tend to increase prices due to several reasons including the impact in the cost of manufacturing because of rupee depreciation and other microeconomic factors. The first quarter of CY2020 will be brimmed with the launches of BSVI cars and two-wheelers as the deadline is just three months away.