Cars set to get costlier from April as cos announce price hikes
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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Prasidh, Kuldeep limit South Africa to 270 after De Kock's hundred
Visakhapatnam (PTI): India fought back gallantly through Prasidh Krishna and Kuldeep Yadav after Quinton de Kock struck his 23rd hundred, keeping South Africa to a manageable 270 in the third and series-deciding final ODI, here Saturday.
India won the toss after judging the spin of the coin incorrectly 20 times in a row. They had little hesitation in inserting the Proteas into bat, a clear indication of dew factor dominating the thought.
After Arshdeep Singh sent back Ryan Rickelton early, De Kock (106, 89b, 8x4, 6x4) struck his seventh century against India and put on 113 runs off 124 balls with skipper Temba Bavuma (48, 67b) as the visitors moved to a healthy position.
De Kock was severe on Prasidh (4/66), who erred on length continuously in his first spell (2-0-27-0). The left-hander biffed the pacer for 6, 6, 4 in his second over to milk 18 runs.
The 32-year-old quickly pounced on anything that was short, and pacers Prasidh and Harshit offered him plenty of feed on his pet areas.
Bavuma was more sedate, and made runs through those typical dabs and jabs, occasionally unfurling a drive of elan.
De Kock moved to fifty in 42 balls, and never let the tempo down reaching his hundred in 79 balls.
India found temporary relief when Ravindra Jadeja induced a false slash from Bavuma to get caught by Virat Kohli at point.
The tourists got another move on through a 54-run partnership between De Kock and Matthew Breetzkle for the third wicket, and at 168 for two in 28 overs they were in a good position to press on.
But Breetzke's punishment of part-time spinner Tilak Varma forced a rethink in the Indian camp, as skipper KL Rahul brought back Prasidh for a second spell.
What a masterstroke it turned out to be! The Karnataka man broke the back of South Africa’s top and middle order in an exceptional second spell (4-0-11-3).
Breetzke was the first man to go, trapped plumb in front with a straight one and four balls later Aiden Markram uppishly chipped a fuller delivery to Kohli at short covers.
Prasidh soon castled De Kock, whose ugly cross-batted swipe failed to connect a full length delivery from the pacer.
All of a sudden, SA found themselves at a shaky 199 for five, losing three wickets in the space of three overs.
Once Prasidh was done away with the top and middle-order, left-arm wrist spinner Kuldeep (4/41) took over and mopped up the tail as SA fell short of even a par total on this track.
