Driven Upward: Carmakers Announce Price Hikes Amid Rising Costs

Various car manufacturers, including Maruti Suzuki, Hyundai, and Mercedes-Benz, plan to increase vehicle prices starting January due to rising input costs and inflation. While some experts note this is an annual strategy to boost year-end sales, others cite declining profitability as a major factor.

Several major car manufacturers have announced plans to increase vehicle prices starting in January. The price hikes span from entry-level models to high-end luxury offerings.

Automakers, like Maruti Suzuki and Hyundai, are citing escalating input costs and inflationary operational cost pressures as key reasons for their decision. However, industry analysts point out that this move is also a typical year-end tactic to boost December sales ahead of releasing new-year-manufactured vehicles.

The increase in automobile prices, as other car manufacturers follow suit, highlights broader economic pressures impacting the industry. These pressures include adverse currency exchange rates, intensified logistics expenses, and shifting consumer preferences.

(With inputs from agencies.)