Auto Market Witnesses Another bout of Price Increases: Tata, Kia Follow Suit of Maruti
In a decision that will affect buyers of cars in India, Tata and Kia followed Maruti’s footsteps in raising prices of their cars. The move has come at a time when the Indian automobile market is reeling from weak sales and increasing input prices.
The price increase, which differs by model, is due to the rising cost of raw materials, such as steel and copper. The current shortage of semiconductors has also added to the problem, compelling manufacturers to bear the additional costs.
Tata Motors, one of the biggest players in the Indian automobile industry, has increased prices of its best-selling models, such as the Tata Nexon, Tata Harrier, and Tata Altroz. The price increase is between ₹ 5,000 and ₹ 25,000, depending on the variant and model.
Kia Motors, too, another automotive major in India, has hiked prices of its models such as the Kia Seltos, Kia Sonet, and Kia Carnival. The hikes vary from ₹ 10,000 to ₹ 50,000 based on variant and model.
Maruti Suzuki, India’s biggest carmaker, had previously raised prices of its models due to increasing input costs and the desire to stay profitable. The price increase, ranging from ₹ 5,000 to ₹ 34,000, is for popular models such as the Maruti Baleno, Maruti Swift, and Maruti Dzire.
The increase in price is likely to have a dual effect on the Indian auto industry. Though it can assist manufacturers in keeping their profit margins intact, it can also discourage price-conscious consumers, who might shift to cheaper options or delay their buying decisions.
As the Indian auto industry continues to navigate the challenges of rising input costs, supply chain disruptions, and changing consumer preferences, it remains to be seen how the latest price hike will impact sales and market dynamics in the coming months.