A new string of Automobile manufacturers have announced plans to hike prices of their passenger vehicles from January, and as the manufacturers before them, they have cited impacts of rising input costs. The price hike will look to partially offset the impact of the rise in prices. While this could be attributed to many factors, one of them could be the downturn of the rupee.
First on the list is Nissan India who announced a price hike of up to 4 per cent across its models. "The revised prices will be applicable across all available models for Nissan and Datsun, effective January 1, 2019," the company said in a statement. The company sells a range of passenger vehicles under two brands -- Nissan and Datsun starting from entry level Datsun RediGo to Nissan GT-R priced between Rs 2.56 lakh and Rs 2.12 crore. "In the wake of the global commodity price increase and a shift in foreign exchange rates, we need to pass on the rising costs to our consumers," Nissan Motor India Director (sales and commercial) Hardeep Singh Brar said in a statement.
Nissan was followed by Ford India who also said that they would bump prices of models by up to 2.5 per cent from January to partially offset the impact of rising input costs."We are taking this step due to increase in input price owing to high commodity prices and frequent fluctuations in foreign exchange rates," said Ford India Executive Director - Marketing, Sales and Service, Vinay Raina Ford sells a range of models, from compact utility vehicle Freestyle (starting price Rs 5.23 lakh) to iconic sports car Mustang priced at Rs 74.62 lakh (all prices ex-showroom Delhi).
Similarly, Honda Cars India and Tata Motors both also announced price hikes, while Tata’s said that the prices of their passenger's vehicles could go up by up to Rs 40,000, to offset the impact of rising input costs and increase in fuel prices. The company's passenger vehicles portfolio ranges from entry-level small car Nano to the premium SUV Hexa, which are currently priced between Rs 2.36 lakh and Rs 17.97 lakh (ex-showroom Delhi). "The changing market conditions, rising input costs and various external economic factors have compelled us to consider this price increase," Tata Motors President of Passenger Vehicles Business Unit Mayank Pareek said. While Honda Cars Auto will increase prices of its entire model range from next month in order to, once again, partially offset the impact of rising input costs.
The company, which sells a range of models in the country, including sedans Amaze and City, is currently working on the quantum of the price increase."Our input costs are up by 4 per cent already due to rise in input costs. In order to offset the impact, we are looking to increase vehicle prices from January. We are currently in the process of working out the exact quantum of the hike," Honda Cars India Ltd (HCIL) Senior VP and Director (Sales and Marketing) Rajesh Goel HCIL, currently, sells models ranging from hatchback Brio with price starting at Rs 4.73 lakh to Accord Hybrid priced at Rs 43.21 lakh (ex-showroom Delhi). These 5 car makers, will follow Maruti Suzuki, Toyota Kirloskar, BMW, Renault and Isuzu have already announced price hike from next month citing the impact of an increase in commodity prices and foreign exchange rates.