Looking to buy a new car in India this year? Buckle up, because car prices are set to rise across the board in the upcoming financial year (FY) 2024-25. Several major car manufacturers have already announced plans to hike prices, citing rising input costs, operational expenditures, and supply chain disruptions.
This article will give you a comprehensive overview of the upcoming car price hikes in India, including which manufacturers are raising prices, the expected increase, and the reasons behind it. We’ll also discuss what this means for car buyers and offer some tips on how to navigate the changing market.
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Rising Input Costs Force Manufacturers’ Hand
The primary reason car prices are increasing is due to rising input costs. These include the cost of raw materials like steel, aluminum, and plastics, which have all seen significant price hikes in recent months. Additionally, car manufacturers are facing higher operational expenditures, such as increased labor costs and transportation expenses.
Here’s a breakdown of some manufacturers and their price hike announcements:
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Toyota: The Japanese giant plans to increase prices for select variants of some models by around 1%, effective April 1st, 2024. They attribute this to escalating input costs and operational expenditures. Currently, Toyota offers over 10 models in India, with prices ranging from Rs 6.86 lakh to Rs 2.10 crore.
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Kia: The Korean carmaker is set to be more aggressive with price hikes, increasing the asking price of its popular mass-market models like the Sonet, Seltos, and Carens by up to 3%. The price hike is attributed to rising commodity prices, input costs, and supply chain disruptions. Kia currently has four models in India, including the fully imported EV6, with prices ranging from Rs 7.99 lakh to Rs 65.95 lakh.
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Honda: While Honda hasn’t officially announced the exact price increase, online reports suggest all three models in their India portfolio – the Amaze, City (including the City Hybrid), and the WR-V – will see a price revision. The current price range for Honda cars in India is between Rs 7.16 lakh and Rs 20.39 lakh.
Expected Price Hikes from Other Manufacturers:
While Maruti Suzuki, Hyundai, Tata Motors, and Mahindra haven’t officially announced price hikes yet, it’s highly likely they will follow suit considering the industry trend. We recommend staying updated with CarDekho for further announcements.
Impact on Car Buyers and How to Prepare
The upcoming price hikes will undoubtedly impact car buyers in India. Here’s what you can expect:
- Higher On-Road Prices: With ex-showroom prices increasing, the final on-road price (including taxes and insurance) will also be higher.
- Potential for Lower Discounts: As manufacturers deal with rising costs, they might offer smaller discounts on car purchases.
Here’s how you can prepare for the price hikes:
- Start Your Car Search Early: If you’re planning to buy a car in the near future, consider starting your research and shortlisting cars now. This will give you a better idea of current prices before the hikes take effect.
- Negotiate Well: Even with smaller discounts, negotiation is still crucial for getting the best possible price on your chosen car.
- Explore Financing Options: If the price hikes impact your budget significantly, consider exploring car loan options with competitive interest rates to manage the financial burden.
- Consider Used Cars: The used car market might be a good alternative, especially if you’re looking for a specific model within a tighter budget.
Final Thoughts
The upcoming car price hikes in India are a reality. While it’s not ideal news for car buyers, staying informed and planning your purchase carefully can help you navigate the changing market. Remember, CarDekho will keep you updated with the latest information on price hikes and industry trends. So, stay tuned and make informed decisions for your car purchase!
