Car prices have seen a massive increase in the past few years, especially after the COVID-19 era.
This won’t stop in 2023 either, as a lot of car makers have announced price hikes that will be implemented in the upcoming new year.
MSIL, Tata Announce Price Hikes From 2023
The cost of cars has increased significantly over the previous two years. The majority of automakers have announced price increases beginning in January, so 2023 doesn’t seem any different.
The rise in commodity prices, rising transportation costs, and costs associated with complying with upcoming RDE (Real Driving Emissions) norms are some of the major causes. From October 2023, 6 airbags will be required, which will add significantly to the cost.
India’s largest carmaker Maruti Suzuki India Limited (MSIL) has announced that it will hike the prices of its models from January 2023. The company stated, “The Company continues to witness increased cost pressure driven by overall inflation and recent regulatory requirements.
While MSIL makes the maximum effort to reduce costs and partially offset the increase, it has become imperative to pass on some of the impacts through a price increase.
Tata will increase prices in January for both ICE and EV vehicles. High commodity prices have been cited by the company as one of the primary causes of the price increase. Tata has also discussed the expense of adhering to the upcoming RDE standards. The cost impact on EVs like the Nexon EV, Tiago EV, and Tigor EV is primarily brought on by an increase in battery prices.
Kia, Jeep, Audi, Mercedes Follow Suit
According to Kia India, prices will go up by Rs 50,000 starting in January 2023. Increased commodity prices and rising transportation costs are two of the main causes of the price increase, according to Kia.
All Kia vehicles reserved after December 31 will be subject to the price increase. In India, Kia is currently the fifth-largest automaker. Its portfolio is strong and includes well-liked options like Sonet, Seltos, and Carens. It also provides EV6 and Carnival.
Battery costs will rise as more and more people switch to using electric vehicles until supply and demand are balanced.
Additionally, Jeep will also be hiking its prices by something between 2 and 4 percent.
Reportedly, Audi has primarily attributed the price increase to an increase in operating and input costs. The German automaker will raise prices across the board by as much as 1.7%.
Mercedes Benz will be increasing the prices of its cars by 5%.
