The automobile industry is a global sector that involves the design, development, manufacturing, marketing, and selling of motor vehicles. It is one of the largest industries worldwide, contributing significantly to the global economy. The industry includes a wide range of vehicles such as cars, trucks, buses, motorcycles, and electric vehicles (EVs), with major players like Tata Motors, Maruti Suzuki, Hyundai, Toyota, Ford, Volkswagen, and more.
A major change that has caught the attention of car buyers and industry experts is the expected price increase by three big car companies Tata Motors, Maruti Suzuki, and Hyundai Motors, which will happen from April 1st, 2025.
The Rise in Car Prices
As we approach April 1st, Tata, Maruti, and Hyundai have all confirmed price hikes across their respective vehicle ranges. Let’s take a look at how each company’s pricing strategy compares.
Tata Motors: Tata Motors has emerged as one of the top players in the Indian automobile market, and the company is once again increasing its vehicle prices in response to rising input costs.
Tata this April, the hike will be expected between 1.5 percent to 2 percent for most of their models, including popular cars like the Nexon and Altroz and more. While the hikes are relatively modest, Tata’s consistent push toward introducing new features, technology upgrades, and electrification in their vehicles has contributed to the steady rise in prices.
Maruti Suzuki: Maruti Suzuki, the largest car manufacturer in India, has always been at the forefront when it comes to sales and innovation. Maruti will be increasing the prices of several of its models, including the Swift, Dzire, and Baleno and more, by approximately 2 percent to 4 percent.
The company has attributed the hike to rising material costs and the increased expenses related to complying with the new BS6 norms. With Maruti Suzuki’s dominant position in the market, these price hikes are likely to impact a large number of buyers.
Hyundai Motors: Hyundai, another key player in the Indian market, is also feeling the pressure of rising costs. The company’s price increase for models such as the Creta, Verna, i20, and more will range upto 3 percent.
Hyundai’s pricing strategy is often more premium compared to Tata and Maruti, and the latest price hike reflects both the challenges posed by global supply chains and the need to maintain a competitive edge in the ever-growing SUV market.
Why Are These Price Hikes Happening?
Last year, car manufacturers faced factory shutdowns and supply chain issues, leading to excess stock. With lower demand during the pandemic, they offered big discounts to clear unsold cars and encourage buyers, while managing inventory and preparing for new models.
The main reason for the sudden price hikes is the rise in raw material costs, especially for materials like steel and aluminum, which have become much more expensive. For companies like Tata, Maruti, and Hyundai, these materials are essential for making cars, so the higher costs are unavoidable.
Additionally, the Indian government’s stricter rules on emissions and fuel efficiency have forced manufacturers to invest in new engine technologies and vehicle parts, raising production costs. Lastly, inflation and higher logistics costs have made transportation and production more expensive. As global shipping and freight costs rise, automakers are struggling to keep their production expenses low, which is pushing car prices even higher.
Which Company is Increasing Prices the Most?
While all three companies Tata, Maruti, and Hyundai are increasing their prices, Maruti Suzuki is raising them the most, with some popular models going up by 3 percent. This aligns with Maruti’s goal to stay a leader in the market and adjust to new rules.
On the other hand, Tata Motors and Hyundai are raising prices less, around 1.5 percent to 2.5 percent. Tata may also increase prices more in the future due to its focus on electric vehicles like the Nexon EV and investment in new technology.
Written by Sridhar J
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