Maruti Suzuki And Tata Motors Announce 3rd Price Hike In 3 Months: Here's Why
Maruti Suzuki and Tata Motors that are one of the largest car manufacturers in India recently made an announcement. In the announcement, both companies increased the prices of their cars. If you are thinking that this is not a big deal, then you might be in for a surprise when you realise that this is the third time both these manufacturers have increased the prices.
Maruti Suzuki
India’s largest car manufacturer increased the price of their entire model range. The revised prices will be effective from 1 April 2025. As per the reports, the car will see a price increase of up to 4 percent depending on the model and variant.
This is not the first time, Maruti has increased the prices of their cars. First price hike took place in January. The second price revision happened in February where the Maruti increased the prices by up to Rs 32,500.
Tata Motors
Tata Motors, which is also one of India’s leading car manufacturer increased the prices for the third time. Just like Maruti, the revised prices will be implemented from 1 April 2025. Tata offers a wide range of ICE and electric vehicles in the market. The revised prices will be applicable on both EVs and ICE models.
Although Tata has announced the price hike, they have not given an exact number or percentage of the price hike. The amount may vary depending on the model and variant that a customer wishes to buy. Just like Maruti, Tata is also increasing the prices of their models for the third time this year. The manufacturer increased the prices once in January and February this year.
Why Price Hike?
Both Maruti Suzuki and Tata Motors informed in their official statement that the rising input cost along with operational expenses and the logistics cost is what is forcing them to increase the price. The manufacturers also said that they are trying their best to optimise the cost and minimise the impact on its customers. A portion of this increased cost is passed on the market and customer.
Other Manufacturers Following Suit
It is not just Maruti and Tata that has increased the prices on their models. South Korean car manufacturer Kia recently announced a price hike which is applicable on all their models from 1 April 2025. The car manufacturer has announced that there will be a price hike of up to 3 percent on the current ex-showroom value. Other than this, most car manufacturers in India like Mahindra, Skoda, Hyundai, Volkswagen have increased the prices on their models in January this year.
The reason for the price hike is the same as mentioned above. It needs to be seen whether the Maruti Suzuki and Tata Motors’ move to increase prices multiple time in just first three months of the 2025 is going to encourage other manufacturers or not. Brands like Honda and Hyundai have already announced second set of price hikes on their models in the country. India is a very price sensitive market and that is one of the reason why many manufacturers are extremely careful and trying their best to provide value for money products to their customers. Even a slight change might affect customer sentiments and would affect their overall sales.