Auto manufacturers announce price hikes for January 2024 amid rising costs

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Auto manufacturers announce price hikes for January 2024 amid rising costs
Credit: © Reuters.

NEW DELHI - Leading car manufacturers Maruti Suzuki (NS: MRTI ), Tata Motors (NS: TAMO ) (NYSE: TTM ), Audi, and Mercedes-Benz (OTC: MBGAF ) are set to increase vehicle prices starting January 2024. The move, driven by higher input costs and overall inflation, will see anticipated price hikes ranging from 2-3%. The announcement reflects an industry-wide trend as automakers adapt to economic pressures.

Maruti Suzuki India has indicated that its entire product range, from the entry-level Alto to the premium Invicto, will be subject to substantial price increases. The company is responding to significant cost pressures, including a prior 2.4% increase in the last fiscal year. The price adjustments are a strategic decision to manage the impact of inflation and high commodity prices on operations.

Tata Motors, another major player in the Indian automotive sector, has confirmed that its full range of vehicles, including electric vehicles, will undergo price adjustments. The decision aims to balance the need for sustainable growth while supporting their dealer partners during these challenging economic times.

Audi India has committed to a 2% increase across its model range. The luxury carmaker's price correction is a response to rising supply chain costs. The company emphasizes the importance of ensuring the sustainability and profitability of its dealer partners.

Mercedes-Benz is also part of this wave of end-of-year price revisions. While the specifics of their increases are not detailed, they are in line with the industry's response to the current economic landscape.

These price revisions are not only a response to cost burdens but also serve as a strategic push to spur sales. By announcing the upcoming price hikes, automakers encourage customers to purchase vehicles at current prices before the increases take effect in January. This approach helps in liquidating older inventory and addressing the financial challenges faced by the industry.

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