Car Prices Hike: If youve been eyeing that dream car, the time to make your move might be now, as car prices in India are set to climb, dealing a significant blow to car lovers across the nation.If your New Years resolution involves a new set of wheels, you might want to expedite that decision. Car prices are slated to soar from January 1, 2024, and the surge is attributed to escalating vehicle costs. However, the precise extent of the increase for each car model remains uncertain.From Maruti to Mercedes: Industry Giants Join the Price Hike BandwagonLeading car manufacturers, from Maruti to Mercedes, are citing mounting cost pressures driven by overall inflation and surging commodity prices as the impetus behind their plans to hike car prices.Maruti Suzuki, the largest player in the Indian passenger car market, has announced its intention to raise prices for its models come January. Tata Motors is set to follow suit, with plans for price hikes across its range, although the exact magnitude of the increase is yet to be disclosed. Mahindra & Mahindra is also gearing up to implement price hikes for its automotive products in the upcoming year.Audi and Mercedes-Benz: A Prelude to the Price SurgePreceding this industry-wide move, German carmaker Audi has already declared a 2 per cent price increase for its cars from January 2024. Mercedes-Benz India is reportedly considering a similar move, contemplating a price hike in the new year.Carmakers Statements on the Price HikesMaruti Suzuki India, in a regulatory filing, stated, “The company has planned to increase the prices of its cars in January 2024 on account of increased cost pressure driven by overall inflation and increased commodity prices.”A Tata Motors spokesperson mentioned, “We are considering a price hike across our passenger and electric vehicles in January 2024. The extent of the hike and exact details will be announced in a few weeks.”Nalinikanth Gollagunta, CEO (automotive division) at Mahindra and Mahindra, affirmed, Based on the inflation and commodity prices outlook, we intend to take a price increase for our automotive products effective January 2024. The exact details of the hike will be disclosed closer to the time.Impact on Sales: The Unanswered QuestionAs car prices brace for an upward trajectory, the looming question remains: what will be the impact on the sales of these automotive giants after the inevitable price hikes The automotive landscape is set for a challenging start to the new year, and prospective buyers might find themselves at a crossroads between acting promptly or bearing the brunt of steeper prices.
