As the New Year approaches, the tradition of price increases by automakers continues, with several leading vehicle manufacturers announcing revisions effective January 1, 2025. The hikes, attributed to escalating material costs, inflationary pressures, and rising logistics expenses, come as companies seek to balance operational sustainability with customer affordability.
Mercedes-Benz India will implement a price hike of up to 3% across its model range. This translates to an additional INR 2 lakh for the GLC and INR 9 lakh for the luxurious Mercedes-Maybach S 680 limousine. According to Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, the increase is necessary to offset higher material and commodity costs, fluctuating logistics expenses, and inflationary pressures that have impacted the company over the past three quarters.
Tata Motors, known for its extensive range of vehicles, including electric options, also announced a price increase of up to 3% across its passenger vehicle lineup. This adjustment, effective from January 2025, aims to partially absorb the rising input costs and inflation, with variations depending on the model and variant.
Kia India is set to implement a price hike of up to 2% across its lineup. The increase is driven by surging commodity prices and escalating supply chain-related expenses. Hardeep Singh Brar, Senior Vice President of Sales and Marketing, emphasised that Kia has absorbed a significant portion of the costs to minimise the financial burden on customers while maintaining its commitment to quality and innovation.
Hyundai Motor India Limited (HMIL) has announced a price increase of up to INR 25,000 across its model range, effective January 2025. Tarun Garg, Whole-Time Director and Chief Operating Officer of HMIL, highlighted the sustained rise in input costs and adverse exchange rates as the primary factors. Despite efforts to absorb the cost escalation, the adjustment became unavoidable to ensure operational balance.
JSW MG Motor India will also revise its prices by up to 3% across its portfolio. Satinder Bajwa Singh, Chief Commercial Officer of the company, stated that the increase is necessary to counter rising input costs and inflationary challenges. MG remains committed to quality and innovation, ensuring the impact on customers is minimized while maintaining its high standards.
BMW India has joined the list of automakers announcing a price increase, with up to 2% hikes across its model range from January 2025. Vikram Pawah, President of BMW Group India, attributed the revision to evolving economic dynamics, including rising input costs and exchange rate fluctuations. This adjustment, he explained, ensures the company can continue to deliver the premium standards and performance BMW customers expect.
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