Automakers across the globe have been crippled by the pandemic in a very unprecedented manner. Firstly the abrupt ending of production caused losses and then when it was reinstated the shortages of various commodities halted the productions. Owing to the startling increase in costs of raw materials, commodities and inputs, carmakers of our nation have resorted to hiking their prices. The hikes in prices will be starting from the January of 2022.
Indian OEMs have been struggling to keep up with the demand that has been generated by the market. The procurement of semiconductor chips along with other material shortages have slowed down the production of new vehicles. All of these issues combined have made the manufacturers alter their pricing to offset the surging costs.
Also read: 10 DC Design cars & how they look in the REAL world: Maruti Swift to Mahindra XUV500
Here is the list of a few OEMs from India who would be implementing a price hike on their portfolio of vehicles from January 2022.
Maruti
Maruti Suzuki has recently informed the stock exchanges that it will be administering a price hike from the 1st of January 2022. The automaker has already increased the price of its vehicles by 4.9% over the course of 2021 with various small increments. Firstly the prices were increased by 1.4 per cent in January, then 1.6 per cent in April and finally 1.9 per cent in September.
Maruti in an exchange filing stated, “Over the past year, the cost of Company’s vehicles continue to be adversely impacted due to increase in various input costs. Therefore, it has become imperative for the Company to pass on some impact of the above additional costs to customers through a price hike,”
Additionally, Maruti Suzuki India Senior Executive Director (Marketing and Sales) Shashank Srivastava also said, “Material cost is an important cost in the overall cost structure for any OEM (original equipment manufacturer). Normally, 70-75 per cent of the total cost of an OEM is material cost. In the second quarter, our material cost to net sales ratio had gone up to a very high figure of 80.5 per cent. This is unprecedented,”
Although it has not been disclosed by how much this raise will be administered. We expect anywhere between 1.5-2%.
Tata Motors
The country’s third-biggest automaker Tata Motors has also announced that they will also be increasing the prices on their vehicles. Coming January we will see a revision on the prices of all the passenger as well commercial vehicles of the manufacturer. The increase will be pegged at around 2.5%.
While this announcement was made recently Tata had already increased the prices of its flagship SUV, the Safari by up to ₹7,000 for the automatic variants.
Shailesh Chandra, President of the Passenger Vehicles Business Unit at Tata Motors said, “Prices of commodities, raw material, and other input costs continue to rise. The company is compelled to increase prices of its passenger vehicles from January 2022 to offset the increasing cost pressures.”
Toyota
Third on this list is Toyota Kirloskar Motor, they have also announced recently that with effect from January 1, 2022, they will also be restructuring their price lists. The company has accredited a ‘sustained increase in input costs including raw materials’ to be the cause of this price revision.
This increase in price will be exercised on all of the models that Toyota has to offer. Innova Crysta, Fortuner, Glanza, Urban Cruiser, Camry and Vellfire will be the subject of the hikes.
Although the price hike will not be done at once. The company will take a staggered approach, which means that the price will be revised at different intervals throughout the year. This will be done so as to make sure ‘that the impact of the cost increase has minimum effect’.
Honda
The fourth and final OEM on this list is Honda India. The company along with all the other automakers has mentioned that it is considering to surge the price of its vehicles from the January of 2022.
The company had its last price hike in August of this year. A spokesperson from the company stated, “There is a severe impact on input cost due to commodity prices’ increase. We are still studying how much can be absorbed,”
Honda’s last release in the nation was its fifth-generation City, which has been the segment best seller for quite a while now. And in November 2021 the Honda City 2666 sales figure stood at a massive 2,666 units.
Also read: Mahindra Bolero beautifully modified to look like Jeep Wrangler Rubicon
The post 4 Car Makers Announce Plans To Hike Prices In January 2022 first appeared on Cartoq.
Comments
Post a Comment