From Tata To Mahindra: Planning To Buy a Car? NOTE! Auto Companies Will Hike Prices From January 2024

Those who are planning to buy their dream car, may want to do so before December 2023-end. Why? Because a host of auto companies, especially major brands, will be hiking their vehicle prices with effect from January 1, 2024. These include auto giants like Tata Motors, Maruti Suzuki, Mahindra & Mahindra, MG Motor India, and even the luxury brand Audi.

These auto firms will raise the prices of their vehicles to offset the impact of rising input costs.

Here are the details of their price hikes:

Tata Motors:

The largest largest commercial vehicle manufacturer, Tata Motors said that it will increase the price of its commercial vehicles effective 1st January 2024, up to 3%. The price increase is to offset the residual impact of the past input costs and will be applicable across the entire range of commercial vehicles.

M&M:

Mahindra Group's flagship company, M&M will be increasing the prices of its passenger and commercial vehicles from January month. It said that the price hike will vary from SUVs and commercial vehicles.

Mahindra has a wide range of SUVs and passenger cars such as Thar, Bolero, XUV700, XUV300, Scorpio N, Bolero Neo, Scorpio Classic, XUV400 EV, Bolero Camper, KUV 100 NXT, and Marazzo among others.

Maruti Suzuki:

Maruti Suzuki has announced that it will increase the prices of its cars in January 2024 on account of increased cost pressure driven by overall inflation and increased commodity prices. It said, "While the company makes maximum efforts to reduce cost and offset the increase, it may have to pass on some increase to the market."

Some of the Maruti's popular models are -- Swift, Brezza, Ertiga, Dzire, Wagon R, FRONX, Jimny, Alto, Alto K10, Celerio, XL6, Eeco, Ignis, Ciaz, S-Presso, Ertiga Tour, Grand Vitara, and Super Carry among others.

Audi:

Luxury brand Audi announced a price increase of up to 2%. across its model range owing to rising input and operational costs. The price hike will be effective from January 01, 2024.

Audi India recently announced 88% growth and has retailed 5,530 units in the first nine months of this year. The brand currently has the widest EV portfolio in the segment.

Currently, Audi India product portfolio: Audi A4, Audi A6, Audi A8 L, Audi Q3, Audi Q3 Sportback, Audi Q5, Audi Q7, Audi Q8, Audi S5 Sportback, Audi RS5 Sportback, Audi RS Q8, Audi Q8 50 e-tron, Audi Q8 55 e-tron, Audi Q8 Sportback 50 e-tron, Audi Q8 Sportback 55 e-tron, Audi e-tron GT and Audi RS e-tron GT.

MG Motor India:

MG Motor will also raise the prices of its vehicles with effect from January 2, 2024.

Currently, some of the MG Motors models are - MG Gloster, Hector Plus, Comet EV, Hector, ASTOR, and ZS EV.

Auto Sector Outlook:

LKP Securities earlier said, "Q2 FY24 observed good numbers from the mainstream auto companies on both volumes as well as profitability front. Going forward, in Q3, we expect even better numbers on good festive demand both qoq as well as yoy. Profitability too will be stably good as raw materials are more or less stable and operating leverage should benefit the auto majors."

The brokerage added, "Lower than expected monsoon and unseasonal rains may have bearing on the sector in H2 FY 24 and H1 of FY25.