Cars to be costlier from now as auto majors Maruti Suzuki, Mahindra, Hyundai price hikes come into effect

Starting Tuesday, April 1, cars have become costlier, with various leading auto companies such as Maruti Suzuki, Mahindra & Mahindra, and Hyundai, having already announced price hikes due to rising input costs and operational expenses.

Maruti Suzuki India, which leads the domestic passenger car segment in the country, has hiked prices of its entire model range by up to 4 per cent..

The auto major currently sells various models, ranging from the entry-level Alto K-10 to the multiple-purpose vehicle Invicto in the domestic market, with prices ranging from Rs 4.23 lakh to Rs 29.22 lakh, respectively (ex-showroom Delhi).


Meanwhile, its rival Hyundai Motor India increased car prices by up to 3 per cent, owing to rising raw material and operational costs.

Similarly, Tata Motors has also increased the prices of its passenger vehicle range, including electric vehicles, from April 2025, for the second time this year.

Additionally, Mahindra & Mahindra has hike prices of its SUVs and commercial vehicles by up to 3 per cent from April. Kia India, Honda Cars India, Renault India and BMW also announced to hike vehicle prices from the this month.

Reasons behind the pocket pinch

Deloitte Partner & Automotive Sector Leader Rajat Mahajan earlier told PTI that carmakers usually have two price hike cycles in India, one at the beginning of the calendar year and another at the start of the financial year.

"The reason for the extent of hike varies, could be related to currency fluctuations where we need more rupees to import the same product, commodity or component," he had said.

In the past six months, the US Dollar has strengthened by nearly 3% against the rupee, which impacts import-heavy sectors, potentially influencing input costs either directly or indirectly. Additionally, original equipment manufacturers (OEMs) operating with a complete knockdown (CKD) model are expected to feel an even more significant impact.

"Other reasons seem to be tepid demand for entry-level vehicles, especially from first-time buyers and rural customers, which is putting pressure on margins. Price elasticity is relatively low in premium segments and any upward change will boost margins," Mahajan stated.

Also, the number of features getting added in the cars is also a reason for such regular hikes that are seen over the last few quarters, he added.

"At the same time, OEMs are aware of high price sensitivity in the entry-level segments. Hence, are likely to be cautious in executing these hikes given the segment may see a revival, especially after the recent budget, which left more money in the hands of the consumer," he noted.

Icra Corporate Ratings Vice President and Sector Head Rohan Kanwar Gupta had said the price hikes are generally taken at the start of the calendar/fiscal year to help offset factors like increases in operational costs on account of inflationary pressures and commodity prices, among others.

"The recent price hikes announced by various car makers are for the same reason," he added.

While the price hikes have the potential to moderate the demand sentiments to an extent, it must be noted that there were already healthy discounts on offer across a variety of models in the passenger vehicle segment, with the industry focused on bringing down inventory levels, Gupta stated.

(With PTI inputs)