Maruti, M&M join Hyundai in announcing price hikes

December 07, 2024 08:41

Anjali Singh/Business Standard

Following Hyundai Motor Indias announcement of a price hike, Maruti Suzuki India (MSIL), Mahindra & Mahindra (M&M) and JSW MG Motor have decided to jack up prices across their model range in a bid to pass on some input cost pressure to consumers.

While the prices of Maruti models are expected to rise by up to 4 per cent, those of M&M and JSW MG Motor will soar by up to 3 per cent starting January 2025.

The decision comes as the automotive industry grapples with rising expenses across key components and commodities. Prices in key raw materials like aluminium, zinc, and rubber have shot up, along with rising logistics expenses.

Aluminium prices have risen by 10.6 per cent year-on-year, while rubber prices have surged by 26.8 per cent, contributing significantly to increased production costs according to Bloomberg data.

The impact of these cost pressures is compounded by elevated logistics expenses.

A disruption in global shipping routes, particularly along the Red Sea, has resulted in an increase in container rates in 2024 compared to the previous year. Additionally, the adverse currency movements have further inflated the cost of imported components.

The countrys largest carmaker Maruti, in an official communication to BSE, attributed the price revision in its entire model range to rising input costs and operational expenses.

'While the company continuously strives to optimise costs and minimise the impact on its customers, some portion of the increased cost may need to be passed on to the market,' Maruti said in its filing.

JSW MG Motor India also attributed price hike on its entire model range to continuously rising input costs and other external factors.

Our dedication to quality remains a priority in doing so, minor price adjustments are inevitable to offset the rising input costs. While we try to minimise its impact on our customers, a marginal price increase shields us from inflationary challenges, stated Satinder Singh Bajwa, Chief Commercial Officer, JSW MG Motor India.

Mahindra & Mahindra, announced a price increase for its SUV and commercial vehicle range, effective January 2025. Like its peers the company said that the price hike is a response to the rising costs due to inflation and increased commodity prices.

Mahindra has made efforts to absorb as much of these additional costs as possible. However, a portion of this increase will need to be passed on to customers, the company stated.

Hyundai on Thursday announced that it will raise prices up to Rs 25,000 from January 2025, citing similar reasons.

Earlier, luxury car players Audi, Mercedes-Benz and BMW had announced a price hike of 3 per cent on their entire model ranges which will also be effective from January 1, 2025.

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