The automakers in India are on a spree to announce price hike on their products in the country. After Tata Motors’ recent price hike announcement, two other manufacturers Volkswagen and Maruti Suzuki have announced price hike on their entire product line up in the country. While Volkswagen has announced a hike of up to Rs 20,000, Maruti Suzuki is looking at raising prices across its range of models by up to 2% from January 2018 to offset the impact of rising input costs.
Currently, VW retails a host of models in the country including the entry-level Volkswagen Polo, Ameo, Vento, Tiguan SUV and the Passat sedan. The price hike has been a result of a range of reasons including several economic factors as well global commodity price fluctuations and local input cost. Apart from Volkswagen, its group company Skoda Auto has also announced a price hike from January 2018 along with Isuzu and the others. However, in order to clear the stocks, VW is currently offering discounts on its products till December 31st, 2017.
According to Steffen Knapp, Director - Volkswagen Passenger Cars, "The price increase is essential on account of several external economic factors as well as fluctuations in the global commodity price and local input cost and is in line with the industry. The impact will be across the product range in India."
Talking about Maruti Suzuki, the company currently sells a range of models, from hatchback Alto 800 to utility vehicle S-Cross with prices tagged between Rs 2.45 lakh and Rs 11.29 lakh (all prices ex-showroom Delhi). The quantum of price increase will vary based on the different models and fuel specifications.
Commenting on the price hike, a company spokesperson said, “We were absorbing the impact of small fluctuations till now. But with a gradual increase in commodity prices we will have to pass on the increase to the customers from January. The prices would go up by up to 2% across the product portfolio from next month.” The quantum of price increase will vary based on the different models and fuel specifications.
Also, earlier this week, Tata Motors too announced price hike across its range of passenger vehicles by up to Rs 25,000 from next month due to rise in input costs while the ace rival Mahindra & Mahindra, too, is planning a price hike in the range of 1.5-2% from January 1, 2018. Apart from these, Toyota Kirloskar Motor, Honda Cars India, Skoda and Isuzu have already announced price hikes from early next year.