If you are planning to buy a car, get set to pay a little extra, come April. This is because several leading car manufacturers have hiked car prices as a result of the steep increase in raw material prices as a result of the ongoing war between Iran and the US.
Starting from one of the leading Indian passenger car makers Tata Motors to luxury carmakers BMW Group India, Mercedes-Benz India and Audi India have already announced price hikes while the passenger car market leader, Maruti Suzuki is reportedly reviewing price hike.
Tata Motors hikes ICE passenger vehicle prices by 0.5%
Tata Motors Passenger Vehicles (TMPV) announced a price increase for its passenger vehicle (ICE) portfolio, effective April 1. “This revision is being undertaken to partially offset the continued increase in input costs,” the company said in its regulatory filing. The weighted average price increase will be 0.5% of ICE portfolio, and the extent will vary across models and variants.
BMW Group India to hike vehicle prices by up to 2%
BMW Group will also increase vehicle prices by up to 2% across its range from April 1, according to PTI. The hike will apply to all models sold under the BMW and MINI brands in India.
The company said the price revision is aimed at offsetting rising logistics and material costs, along with the impact of a depreciating rupee. According to Hardeep Singh Brar, President and CEO of BMW Group India, the adjustment will help the company continue delivering strong performance, innovation, and service standards to customers. Meanwhile, other luxury carmakers such as Mercedes-Benz India and Audi India have also announced vehicle price hikes starting next month.
According to the PTI report, Mercedes-Benz and and Audi India have already announced increasing vehicle prices from next month.
Auto stocks under pressure
However, the auto stocks have been under severe selling pressure. The Nifty Auto Index is under pressure recently. It has declined 3.06% in the intra-day trade and 15.8% so far this year.
Tata Motors has declined sharp 4.87% in afternoon trade and 6.41% so far this year.