Honda Announces Price Hike: Vehicles to Become 2% More Expensive from January 1 Due to Increased Manufacturing Costs
After Maruti Suzuki, Hyundai, and Tata Motors, Honda Cars India has also announced a price hike for its vehicles. The company’s Vice President of Marketing, Kunal Bahle, stated that the price of Honda cars will increase by 2%. The new prices will come into effect from January 2025.
Bahle mentioned, “The company is making continuous efforts to ensure that customers are not affected by the increase in costs.” He also added, “The pricing review for the recently launched third-generation Amaze will take place in mid-January.”
Automobile Companies Raise Prices Due to Increased Manufacturing Costs
Due to rising manufacturing costs, several automobile companies are increasing the prices of their vehicles. Prior to this, other automobile companies such as Maruti Suzuki, Hyundai Motor India, Mahindra & Mahindra, Mercedes-Benz, BMW, and Audi also announced price hikes, effective from January 2025.
All these companies have cited nearly the same reason for the price increases. They stated that the overall manufacturing cost has risen due to higher input costs and logistics expenses, prompting the companies to take this decision.
Tata Motors to Increase Vehicle Prices by 3% Starting January 2025
Tata Motors will increase the prices of its passenger vehicles by up to 3% starting next month, covering petrol, diesel, and electric models. The company stated that the price hike is necessary to partially offset the rising costs of raw materials and inflation. The new prices will come into effect from January 2025, and the increase will vary depending on the model and its version.
Tata Motors’ current model lineup includes the Tiago and Altroz in the hatchback segment, the Tigor in the compact sedan segment, the Punch in the micro SUV segment, the Tata Nexon in the compact SUV segment, and the Harrier and Safari in the premium SUV segment. Additionally, the brand recently launched the Tata Curvv, an SUV coupe.
In the electric vehicle category, the company offers the Curvv EV, Punch EV, Nexon EV, Tiago EV, and Tigor EV. Tata Motors is also preparing to launch the Sierra EV soon.
JSW MG Motors India to Raise Prices by 3% from January
JSW MG Motors India will increase the prices of all its models by up to 3% starting from January. The company stated that the price hike is due to the continuous rise in auto parts costs, the impact of exchange rates, and increased logistics expenses.
Kia Cars to Become 2% More Expensive from January 2025
Leading premium car manufacturer Kia India has announced a 2% price hike across all its models. The new prices will be effective from January 1, 2025. The company stated that the increase is due to rising commodity prices and higher supply chain costs.
Hyundai Cars to See Price Hike of Up to ₹25,000 from January 2025
Hyundai Motor India Limited (HMIL) has announced a price increase of up to ₹25,000 across all its models. The new prices will come into effect from January 1, 2025. The price hike is attributed to the increase in input costs. HMIL stated that the price adjustment will vary across models and will be based on the specific variant, with the increase capped at ₹25,000.
Maruti Suzuki Cars to Become 4% More Expensive from January 2025
Maruti Suzuki has announced that it will raise the prices of its cars starting from January 2025 due to rising raw material costs and operational expenses. The price hike will be up to 4% and will vary depending on the model. While the company continues to optimize costs and minimize the impact on its customers, it stated that some portion of the increased costs will have to be passed on to the market.
Mahindra & Mahindra to Raise Vehicle Prices by 3% from January 2025
Mahindra & Mahindra will increase the prices of its entire range of sports utility vehicles (SUVs) and commercial vehicles (CVs) by up to 3%. The company stated in an exchange filing on Friday, December 6, that the price hike will be effective from the beginning of January 2025. This decision has been taken in response to rising costs due to inflation and the increase in commodity prices.
Two Key Reasons Behind Annual Price Hikes
Car manufacturers cite two main reasons for implementing price hikes starting in January: rising component costs, increased input costs, and higher operational expenses. However, industry experts suggest that automakers announce price hikes in December to encourage customers to purchase vehicles before the new year. Without this, customers may delay their purchases due to fears of price increases in the upcoming year.
Additionally, companies need to clear out their manufacturing stock from the previous year. If customers don’t buy vehicles in the last month of the year, the cars produced in the new year may appear outdated. As a result, companies often offer more deals on cars, a trend commonly seen at the end of the year and fiscal year.
