Planning to Buy a New Car? Finalize Your Purchase Before December 31 as Car Prices Rise in January 2025
Car prices are set to increase in India as several automakers, spanning mass-market and luxury segments, have announced price hikes starting January 2025. Rising input costs, commodity price surges, higher operational expenses, and inflationary pressures have compelled original equipment manufacturers (OEMs) to adjust prices.
Key Highlights
- Maruti Suzuki India: Prices will increase by up to 4% across models like Alto K10, Swift, Dzire, Brezza, and Grand Vitara.
- Hyundai Motor India: Hikes of up to ₹25,000 will apply to models such as the Grand i10 Nios, Creta, and Ioniq 5 EV.
- Mahindra & Mahindra: SUVs, including the Thar and XUV700, will become pricier by up to 3%.
- JSW MG Motor India: The MG lineup, including Hector and Gloster, will see a hike of up to 3%.
- Mercedes-Benz India: Prices will increase by ₹2 lakh to ₹9 lakh depending on the model, with protection for bookings until December 31, 2024.
- BMW India: A hike of up to 3% will apply across its portfolio, including luxury sedans and EVs like the i7.
Why Are Car Prices Set to Increase?
Carmakers attribute the hikes to several factors:
- Commodity Price Surges: Rising costs of raw materials like steel and aluminum.
- Operational Expenses: Increased manufacturing and logistics costs due to inflation.
- Exchange Rates: Adverse currency fluctuations impacting imports.
- Inflation: General inflationary pressures affecting cost structures.
Statements from Automakers
- Maruti Suzuki: “The price increase will vary by model and is necessary to offset rising input costs.”
- Hyundai: “This adjustment is imperative to manage sustained cost escalation.”
- Mercedes-Benz: “Despite efforts to optimize operations, the increased cost structure requires a nominal price correction.”
Implications for Consumers
The upcoming price hikes will prompt customers to reconsider purchases before January 2025 to capitalize on current prices. Luxury buyers might benefit from Mercedes-Benz’s price protection offer on vehicles booked before December 31, 2024.
Preparing for the Hike
Consumers can:
- Finalize purchases in December 2024 to avoid increased costs.
- Explore festive discounts and year-end offers.
- Consider financing options to mitigate the impact of higher upfront costs.
As automakers navigate rising costs, the new year will usher in higher prices across the automotive landscape.
