Car manufacturers in India set to hike prices from January 2021

As the year of a pandemic comes to an end, several automotive manufacturers have announced a hike in the prices of their vehicles. Initiated by Maruti Suzuki, followed by Hyundai Motors India, Kia Motors India, and also by Mahindra. This has also come out as a strategy to boost sales in the last month of the year, as the cars are about to become expensive from next year.

Kia Motors price hike

Kia Motors India has announced that there would be a hike in prices of the models – Kia Seltos and Kia Sonet from January 2021. Kia Sonet was launched in September 2020, with an introductory price of Rs. 6.71 Lakh for the base petrol variant and Rs. 9.49 Lakh for the Turbo variant. It has announced that these prices were only introductory and there is an intention to increase the prices from January 2021.

This is not the case for the Kia Carnival, as the price would remain unchanged. This multi-purpose vehicle (MPV) model of Kia is available in three seating configurations, ranging from 7 to 9-seater. The current ex-showroom prices vary from Rs. 24.95 lakh to Rs. 39.95 lakh

Hyundai price hike

Hyundai India has launched some big cars this year, which includes the new-generation models for the i20 and Creta, as well as the Verna facelift, and now has around 10 models set on its list set to launch for the year 2021. Following the market trends of its competitors, Hyundai India is also set to increase the prices of its entire range of models from January 2021. The hike in prices is subject to the increase in material costs and is expected to affect all the models of Hyundai, ranging from the Santro to Verna, Creta, and Kona Electric. Currently, the entry-level variant of Santro is priced (ex-showroom) at Rs. 4.63 lakh and the top ranging variant of Tucson (SUV) is Rs. 27.03

Mahindra price hike

India’s popular utility vehicle segment manufacturer -Mahindra has also announced to hike prices from January 2021. This is set to affect both – the passenger and the commercial models. Because of boosting sales in the current year, Mahindra has introduced attractive discounts and benefits across its models. On account of this, Mahindra is offering an additional discount on accessories for online bookings in December 2020. The details on the variant-wise prices for each model will be known in the days to come.

Maruti Suzuki price hike

Maruti Suzuki has stated that in the year 2020, the input costs of vehicle manufacturing have gone up drastically, resulting in to increase in the prices of its models across all variants. Ranging from the entry-level model – Alto is priced at Rs. 2.95 lakh to XL6 (top variant) priced at Rs.11.52 lakh, all the models would be priced higher. The higher-priced models are expected to see a higher hike in the prices as compared to the low and mid-range variants. This is expected to be effective from January 2021

Maruti Suzuki has about 50% of the market share in India and it is ahead of all other manufacturers by a huge margin. Maruti Suzuki currently offers a long list of vehicles in the mass-segment which includes Alto, Celerio, Swift, Ignis, Dzire, Baleno, Ciaz, Ertiga, Brezza, S-Cross and XL6. The brand is also planning to launch a few new models in 2021 and it might most probably include the all-new Jimmy, which was showcased at the 2020 Auto Expo.

In early 2020, Maruti Suzuki discontinued all its diesel-powered models in the market. This move started last year to ensure that its vehicles meet the Bharat Stage-6 emission norms of the government. Maruti Suzuki currently has no plans to re-introduce the diesel engine back in the market. However, if the demand rises in the future, diesel engines might make a comeback.