On Friday, Maruti Suzuki India Limited (MSIL) announced that it will increase the prices of its cars from January 2023. Being the largest automaker in India, this decision has spread like wildfire in the automobile market. It gave a lot of reasons like inflation, cost pressures, and regulatory requirements behind this move. 

In an interview with indices, the automaker said that the company was continuously facing cost pressure because of inflation and regulatory requirements. Maruti Suzuki is making the maximum efforts to do cost control, it has become inevitable for them to keep going on without increasing the prices. “The company has planned this price increase in January 2023 which shall vary across models” is what the automaker said.

Maruti Suzuki has still not revealed the extent to which the prices would increase. This year too Maruti Suzuki announced hiked prices of its cars, once in January and the next in April. During the hikes, the company strategically increased the prices of its most popular cars to increase its profit considerably. These cars include hatchback Swift, Alto, Ertiga, Baleno, and many others. The price hikes went up to 22,000 INR. Earlier this year in January, Maruti Suzuki car prices were hiked in the range of 21,000 to 30,000 INR which was for entry-level cars as well as mid-range cars. 

Maruti’s considerable growth in November 2022

Maruti Suzuki has recorded more than 14% of year-on-year sales growth this November. The announcement of hiking the prices of its cars came just a day after the sales growth was reported. 

During November 2022, the automaker sold around 1,60,000 cars, more than the number of cars sold in November 2021, which was around 1,39,800. Unfortunately, the company recorded a decline in its sales by 5.06% from October, which witnessed a boost in sales due to the festive season. 

On the whole, Suzuki cars like Baleno, Swift, and others, accounted for 73,000 unit sales approximately. This resulted in a 27.8% year-on-year increase! Cars like Ertiga, Vitara Brezza, etc., which come under the utility vehicle segment, sold around 32,500 units, reporting an increase of 32.5% Year on Year sales. 

Other Brands that declared hiked car prices from 2023

Though Maruti Suzuki’s announcement of hiked car prices has caused some stir in the market, it isn’t the only one to have done so. Many other brands have decided to increase their prices, some even on the same grounds as Maruti Suzuki. Here are some of the companies with hiked car prices from the next year.

  • Audi

Amidst luxury cars in India, Audi has been the first to announce that it has decided to increase prices across some of its models by up to 1.7%. The reason for this hike is owing to rising input and operational costs. The estimated prices would be released in January 2023 itself, and would also come into effect from then. 

Audi has already hiked the prices of its cars three times this year. In January and April 2022, the prices increased by 3 percent, while during the festive season in September 2022, the prices were hiked by 2.4% across different ranges.

Currently, Audi India’s cars start from 43. 12 lakh INR for A4 Sedan, which is an entry-level car. The prices go up to 2.24 crore for the RS 7 Sportback. 

  • Mercedes-Benz

Another luxury brand, Mercedes-Benz has announced an increase in its price, applicable from the 1st of January, 2023. A hike of 5% will be applied to all ex-showroom prices of its entire line-up. 

Mercedes has given rising input and logistics costs as its reason for the hike. It has also released a list of cars and their revised prices model-wise. Mercedes GLA Class 200 has been priced at 46.50 lakh while Mercedes S 350d is priced at 1.65cr. The Mercedes-Benz Maybach S580 will receive a maximum price hike of 7 lakhs. 

To run a profitable and sustainable business, Mercedes-Benz and its franchise partners had to do a price correction to compensate for the rising inflation cost pressures. The CEO of the brand is of the opinion that this decision would ensure the premium positioning of the brand and would help provide best-in-class ownership experiences. 

  • Renault India

Renault too has announced its decision of increasing the prices of its models from 1st January 2023. Renault has not declared the exact range of hike, but just like the other brands, it has given rising input costs because of inflation, changes in foreign exchange rates, regulatory requirements, etc. as the grounds for this decision.

  • Kia

Kia India has announced a minimum hike of 50,000 INR which will be applicable from the 1st of January, 2023. Just like the other car brands in the country, Kia to has confirmed increasing prices of their product portfolio.

Along with a rise in price across the entire range of models, the company is also planning to expand its CPO business in the country. 

Conclusion

From the uniformity across brands to increase their product prices, starting from the next year, it is clear that inflation has adversely affected the automobile industry. The production cost has increased significantly, which is directly affecting customers!

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