Automotive Industry Faces Price Adjustments

In response to escalating input costs, leading automotive manufacturers including Maruti, Hyundai, Kia, Tata Motors, and Honda Cars have announced price hikes of up to 2-4% effective April 2025. Mahindra & Mahindra is also considering a similar move, evaluating market conditions and input costs for an appropriate decision.

Impact of Rising Costs

Tarun Garg, COO of Hyundai Motor India, highlighted the necessity of passing on part of the cost escalation to consumers due to sustained increases in operational expenses. Hyundai and its sister company Kia have both announced a 3% price increase, attributing the hike to rising input costs, increased commodity prices, and higher operational expenses.

Market Reactions and Future Outlook

Despite tepid retail numbers and plateauing car sales, companies are proceeding with price hikes due to geopolitical reasons and supply chain disruptions. FADA president C S Vigneshwar noted the current inventory levels and the potential impact of price hikes on future sales. Dealers anticipate that the price adjustments will neutralize existing discounts in the retail market.