Passenger Vehicles to Become Expensive
Major automotive manufacturers in India including Maruti Suzuki, Hero MotoCorp, Nissan, and several others have announced an increase in prices of their cars and two-wheelers thereby passing on rising input costs to the consumers. Apart from direct input costs, companies are also saddled with a rise in fuel and freight costs which may also have contributed to their decision to increase the prices.
“Over the past year the cost of company's vehicles has been impacted adversely due to increase in various input costs. Hence, it has become imperative for the company to pass on some impact of the above additional cost to customers through a price increase in April 2021. This price increase shall vary for different models, Maruti Suzuki stated in an official statement to BSE.
Hero MotoCorp, the largest two-wheeler manufacturer in the world, will make an upward revision in the ex-showroom prices of its motorcycles and scooters, with effect from April 1, 2021. “The price hike has been necessitated to partially offset the impact of increased commodity costs. The company has accelerated its cost-savings program to ensure minimal impact on the customer,” the company said in a statement.
Nissan Motor India has also announced a price hike across all available models for Nissan and Datsun, effective from 1st April 2021.
“There has been a continuous escalation in auto component prices, and we have tried to absorb this escalation over the last few months. We are now constrained to increase our prices across all Nissan & Datsun models, the increase varies from variant to variant, while still offering the best value proposition to its discerning Indian customers,” said Rakesh Srivastava, Managing Director, Nissan Motor India.
