Auto companies opt for up to 2-4% price hike due to rising input costs

CHENNAI: Rising commodity prices are once again ringing in a series of price hikes in Motown. Already top car companies like Maruti, Hyundai, Kia, Tata Motors and Honda Cars among others have announced April hikes. Mahindra & Mahindra is “evaluating” aspects of “market conditions, inputs costs and competitive landscape” for an “appropriate decision,” said a spokesperson.

Auto marketers say rising input costs are playing spoil sport.

Tarun Garg, whole-time director and COO of Hyundai Motor India, said: "With the sustained increase in operational expenses, it has now become imperative to pass on a part of this cost escalation through a minor price adjustment. The price increase will be effective in April 2025.”

The company announced a hike of up to 3% effective in April. It said the price markup is on account of "rising input cost, increased commodity prices and higher operational expenses, amongst other reasons."

Hyundai’s sister company Kia has announced a vehicle price hike of up to 3% from April due to rising input costs.

The quantum of price increase would vary based on the variants and models, said the company.

Earlier this week, car market leader Maruti Suzuki announced up to 4% price increase due to “rising input costs and operational expenses.”

Ditto for Tata Motors which has announced a hike for both its passenger and commercial vehicle range. The company announced a price increase of up to 2%, across its commercial vehicle range, effective April 1. It has also announced that it “intends” to do a price mark up for its passenger vehicle range as well starting April.

Auto industry sources say passenger vehicle companies are opting for hikes despite tepid retail numbers because of a variety of geopolitical reasons including tariff threats and supply chain disruptions. This despite the fact that car sales are plateauing out in the last quarter of this fiscal and most companies already took a small markup in January 2025.

FADA (Federation of Automobile Dealers Associations) president C S Vigneshwar said, “Retail numbers have been tepid and inventory levels are at 50 days for the last two months though we want to bring it down to 30 days.”

The March numbers, he added, would be pushed through due to depreciation benefits but May onwards the price pinch might show. Dealers say the price hike will simply neutralise the current discount levels in the retail market.



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