New Delhi: Cars are set to get costlier from April, with various automakers like market leaders Maruti Suzuki, Mahindra & Mahindra, and Hyundai, announcing price hikes due to rising input costs and operational expenses.

Maruti Suzuki India, which leads the domestic passenger car segment in the country, plans to hike prices of its entire model range by up to 4 per cent from next month.

The auto major currently sells various models, ranging from the entry-level Alto K-10 to the multiple-purpose vehicle Invicto in the domestic market, with prices ranging from Rs 4.23 lakh to Rs 29.22 lakh, respectively (ex-showroom Delhi).

Its rival Hyundai Motor India said it will increase car prices by up to 3 per cent from April 2025, owing to rising raw material and operational costs.
Similarly, Tata Motors intends to increase the prices of its passenger vehicle range, including electric vehicles, from April 2025, for the second time this year.

Mahindra & Mahindra said it will hike prices of its SUVs and commercial vehicles by up to 3 per cent from April. Kia India, Honda Cars India, Renault India and BMW have also announced to hike vehicle prices from the next month.

Deloitte Partner & Automotive Sector Leader Rajat Mahajan said carmakers usually have two price hike cycles in India, one at the beginning of the calendar year and another at the start of the financial year.

"The reason for the extent of hike varies, could be related to currency fluctuations where we need more rupees to import the same product, commodity or component," he stated.

Over the last six months, the US Dollar has appreciated by almost 3 per cent against the rupee, which affects high import-dependent categories that may have a direct or indirect impact on input costs. Besides, original equipment manufacturers (OEMs) with a complete knockdown (CKD) footprint are likely to experience an even greater effect.

"Other reasons seem to be tepid demand for entry-level vehicles, especially from first-time buyers and rural customers, which is putting pressure on margins. Price elasticity is relatively low in premium segments and any upward change will boost margins," Mahajan stated.

Also, the number of features getting added in the cars is also a reason for such regular hikes that are seen over the last few quarters, he added.

"At the same time, OEMs are aware of high price sensitivity in the entry-level segments. Hence, are likely to be cautious in executing these hikes given the segment may see a revival, especially after the recent budget, which left more money in the hands of the consumer," he noted.

Icra Corporate Ratings Vice President and Sector Head Rohan Kanwar Gupta said the price hikes are generally taken at the start of the calendar/fiscal year to help offset factors like increases in operational costs on account of inflationary pressures and commodity prices, among others.

"The recent price hikes announced by various car makers are for the same reason," he added.

While the price hikes have the potential to moderate the demand sentiments to an extent, it must be noted that there are already healthy discounts on offer across a variety of models in the passenger vehicle segment, with the industry focused on bringing down inventory levels, Gupta stated.

Accordingly, the impact of these price hikes on demand is expected to be modest, he noted.

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New Delhi: A visit by the US Ambassador to India, Sergio Gor, to Chandigarh on Monday has triggered sharp criticism from opposition leaders and social media users, raising questions about national security and foreign policy.

On X, Ambassador Gor announced his visit, writing, “Just landed in Chandigarh. Looking forward to visiting the Western Command of the Indian Army.”

Soon after, opposition voices questioned the broader implications of the visit. Congress Kerala, in a post, commented, “Why so much panic? We’ve already seen Pakistan's ISI getting access to Pathankot Airbase with this government's blessings. Didn't they say then ‘Modi ne kiya ho to kuch soch samajh kar kiya hoga?’ Compared to that, this is very small.”

Shiv Sena (UBT) leader Priyanka Chaturvedi also weighed in, writing, “Since India’s national strategic interests are now tied to what US wants India to do, this visit seems to sync with that.”

She further added, “India’s history will remember the de-escalation announcement between India and Pak was announced on social media by the US President before Indians got to know from their own government. US Ambassador is doing the job for his nation, who is doing for us? The answer is blowing in the wind.”

The visit comes against the backdrop of the growing US-India defence partnership.

Writer and political analyst @rajuparulekar commented on ‘X’, “East India Company is back!”

“Is it allowed for an ambassador to visit any army unit in india?” asked another user.

Several X users expressed concerns over the appropriateness of the visit.

One asked, “Is it allowed for an ambassador to visit any army unit in India?” Another wrote, “Why an ambassador visiting our army places? To talk to Chandigarh lobby for F-35?”

“We have completely sold Indian sovereignty. Rothschild the evil Bankers will now control NSE. Modi sold Bharat Mata to Trump . And now American imperialist is visiting our army command . Scary,” wrote another user.

“The Indian Army isn’t part of geopolitics, so why is he interested in visiting there?,” opined another.

On Sunday, Gor welcomed Admiral Samuel Paparo, Commander of the United States Indo-Pacific Command (INDOPACOM), highlighting efforts to expand the growing US-India defence partnership.

In a post on X, Gor wrote, “Delighted to have @INDOPACOM Commander Admiral Samuel Paparo in India to expand the U.S.-India defense partnership. Now is the time to strengthen vital cooperation between our two nations.”

On Monday, Admiral Samuel J. Paparo Jr visited the headquarters of India’s Western Army Command along with the American envoy Sergio Gor. The delegation was briefed on the formation’s capabilities, its past operations, and future plans.

The American delegation also visited Bengaluru, where they met three start-ups, two in the space sector and one in defence, and participated in an Indo-US conference.