Auto manufacturers in India have announced a price hike across vehicle range from April 2021. This shall be the second price hike in this calendar year, amid the increased production input cost (Steel, aluminium, etc.)
Henceforth, the increased prices shall help the manufacturers counterbalance the expanding production cost.
The cost increment will change for various models, Maruti Suzuki declared without indicating the quantum of value increase; the organization had increased costs up to ₹ 34,000 in January 2021.
The dominant car producer Maruti Suzuki has said that it will have to further increase the costs of its vehicles from April 2021 considering the inimical impact of rising input price on vehicles.
Maruti Suzuki manufactured 168,180 units of vehicles (165783 PV Units & 2397 light commercial units), in February compared to 140,933 in the previous year. The estimated sales growth of 11.8% compared to February 2020 was registered. However, the company also stated a 12.8% sales loss as per FY 2020-21.
Joining the suit are other car manufacturers like Nissan, Datsun, Renault who have announced price hike from April 2021. Unlike Maruti Suzuki, none of these manufacturers have announced the amount of hike in price yet.
It would be interesting to watch if the government announcing a 5% rebate on vehicle upgrade under the Vehicle Scrappage Policy will the car manufacturers be able to achieve the sales target with the said increased prices. As the consumers are already in two minds due to the high fuel prices.
With the fear of Lockdown & high fuel prices, along with an incentive for exchanging your old vehicle only the coming time shall state if the price hike was beneficial or no for the car manufacturers.