Despite resorting to deep discounts amidst a sales slowdown, carmakers across the board have decided to go for a price revision next month in order to partially offset the impact of rising input costs and increased operational expenses. Some leading automakers like Maruti Suzuki, Hyundai, Mahindra and Mahindra (M&M), JSW MG, BMW, and Audi have announced price hikes in the range of 1-4 percent effective January 1, 2025.

Some carmakers like Maruti Suzuki have stated that price adjustments will vary depending on the model. Hyundai, M&M and BMW are also echoing similar strategies to maintain profitability.

Starting January 1, the prices of Maruti Suzuki models will go up by up to four percent, depending on the model and variant. “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,” said the company's official release.

Hyundai Motor India Limited (HMIL) has also announced that it will raise prices for its entire model range, effective January 1, 2025.  The South Korean carmaker claimed that the price increase has been necessitated by an increase in input costs, adverse exchange rate and increase in logistics costs.

“Our endeavour is always to absorb rising costs to the extent possible, ensuring minimal impact on our customers. However, with the sustained increase in input cost, it has now become imperative to pass on a part of this cost escalation through a minor price adjustment, stated Tarun Garg, Whole-time Director and Chief Operating Officer, HMIL. He also revealed this price increase will be done across models and the extent of increase will be up to Rs 25,000.

Mahindra has also announced a price increase for its entire range of passenger and commercial vehicles, effective January 2025. The company claims that this adjustment is in 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 extent of the price increase across different SUVs and commercial vehicles will be up to 3 per cent, the company said in a statement.

JSW MG Motor India has also announced a price hike of up to 3 percent across its entire product portfolio effective January 2025.  Satinder Bajwa Singh, Chief Commercial Officer, JSW MG Motor India stated, “While we try to minimise its impact on our customers, a marginal price increase shields us from inflationary challenges.”