Maruti, Skoda, Tata and Volkswagen will increase their prices from January
Posted on Dec. 2021 07:00:00
Automakers cited rising entry and operating costs as the main reason for the price hike.
Maruti Suzuki, Toyota, Skoda and Tata are among several automakers who have announced price hikes for their models from January 2022. It is quite common for automakers to raise their prices at the start of the calendar year, in due to exchange rate fluctuations. and rising costs of inputs and materials. Not only mainstream automakers, but even luxury brands like Mercedes and Audi have announced price hikes for their product portfolio. Let’s take a look at all the manufacturers who are expected to increase their prices from next month.
Maruti Suzuki was one of the first to announce a price hike from January 2022. The price hike will be applicable on all Maruti Arena and Nexa models, although it will vary from model to model. And while Maruti has yet to announce the magnitude of the price hike on each individual model, expect updated pricing to be revealed before December 31. In 2021 itself, Maruti increased the price of its models three times – the first in january, the second in april and the third in September.
Honda is also expected to increase the price of its models from next month. The automaker said it was studying how much of the rising costs of inputs and commodities can be absorbed by the company and how much should be passed on to the customer. Expect an official announcement in the coming days. The price hike is expected to affect all Honda models in India.
Renault is also looking to increase the price of its vehicles from January. Like all other automakers, Renault also cited rising input and material costs as the reason for the price hikes. Renault currently has four models on sale in India – Kwid, tribe, Kiger and feather duster – and all models should experience a noticeable price increase.
Local car manufacturer Tata Engines has also announced a price hike across its entire vehicle portfolio, starting in January 2022. This includes both its commercial and passenger vehicles. While Tata specified a 2.5% price increase for its utility vehicles, they did not quote an exact figure for the passenger vehicle lineup. However, it will be applicable to all their models – electric and ICE-powered – including the newly launched Tata Punch.
Price of all Toyota vehicles will also become more expensive from January 2022. Toyota also did not announce the amount of the price increase, but they did say that it would be applicable on all models. The magnitude of the price increase is expected to vary from model to model. In India, Toyota is currently selling the Innova Crysta and the Fortunate, and the engineering badge Urban cruiser and Glanza. This too was motivated by rising costs of inputs and commodities.
Skoda announced that all its models on sale in India – Koushaq, Octavia and Superb – will see a 3% price increase from January 2022. The exact model and price increase per variant will be revealed next month. That said, Skoda has rolled out very few price hikes on its models in 2021, with the Kushaq, Octavia and Superb seeing only one price hike each.
Volkswagen announced that a price hike ranging from 2 to 5 percent will be rolled out on the Polo, Vento and Taigun, effective January 1, 2022. The automaker has yet to announce the amount of the price increase for each individual model. The recently launched The Volkswagen Tiguan facelift was, however, excluded from the scope of the price increase.
CitroÃ«nunique model on sale in India – the C5 Aircross – will see a 3 percent increase in its ex-showroom price. It will be the second price increase on the C5 Aircross in the span of two months, with the previous one arriving in November this year, when the price of the car was increased to Rs 1.30 lakh. The C5 Aircross is currently retailed in India at a price between Rs 31.30 lakh and 32.80 lakh (ex-showroom, India).
Among luxury car manufacturers, Mercedes-Benz announced a 2% price hike on some models, although the company does provide price protection on some models. Mercedes clarified that customers who have booked their MY2021 models and are waiting for delivery will get them at the price when booking. Additionally, customers who book a select range of cars such as the A class, GLA, and Class E until December 31 will also be offered price protection.
As for Audi, the automaker will launch a 3% price hike across its entire product portfolio from January 2022. Like all other automakers, Audi has also cited rising entry and operating costs as because of the price increase.
What is your reaction to the wave of price hikes announced by so many automakers ahead of the new year? Let us know in the comments below.
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