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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Delhi man stages burglary at own house to repay loans, arrested
New Delhi (PTI): A 45-year-old man, who had reported a burglary at his house in Uttam Nagar, was arrested after it was found that he had staged the crime to repay his mounting debts, a police officer said on Monday.
The accused, identified as Butta Singh, worked as an AC technician and owned a shop in Sewak Park, he said.
Facing financial losses and struggling to repay loans, he allegedly stole gold jewellery from his house and reported a fake burglary, the officer added.
Deputy Commissioner of Police (Dwarka) Ankit Singh said, "Butta Singh had lodged a complaint on March 21, stating that between 3 pm and 6 pm, unidentified people had stolen a gold necklace set, a gold mangalsutra, two gold rings, a gold chain and Rs 45,000 in cash from his residence."
A case was registered at Uttam Nagar police station under relevant sections of the Bharatiya Nyaya Sanhita.
During the probe, Singh's wife told police that around the time of the incident, she had left home to buy groceries, while her husband was out for work and children in school. When she returned, the jewellery was found missing.
The DCP said investigators noted that there were no signs of forced entry, and only Singh and his wife had the house keys.
CCTV footage from the area showed no unknown persons coming to the building at the said time, but Singh himself was seen entering and leaving the house within nine minutes.
His mobile phone records revealed messages from a finance company regarding gold pledges, the DCP said.
After being confronted with the evidence, Singh confessed that he had stolen the jewellery to clear overdue loan payments. He took a loan when he purchased his shop in 2022 and later took another loan to renovate it.
Additionally, he had bought a seven-seater taxi on bank credit, but financial setbacks led him into deep debt, the officer said.
Police have recovered a gold necklace set and a gold ring from his possession. Other gold items were found to be mortgaged at a pawn shop in Uttam Nagar.
Singh has no previous criminal record, police said.
