As the year is drawing to a close, several manufacturers have announced a hike in the price of their vehicles. Previously, Maruti Suzuki had announced that they would be hiking the price of their vehicles from January 2021. Now, Hyundai and Kia have also announced a price hike on their vehicles effective from January 2021. This should however help manufacturers push sales in the last month of the year before the cars become more expensive from next year.
Kia have conveyed to their dealers that there will be ‘an upward price correction’ for the Seltos and the Sonet from January 2021 onwards. The statement also said that, “The expected increase will be substantial. Exact extent of price increase will be intimated on January 1”. Kia have however not mentioned about any price hike for the Carnival MPV, which is obviously their least selling model. Prices for the Seltos currently range from INR 9.89 lakh to INR 17.34 lakh, while the Sonet is priced between INR 6.71 lakh to INR 12.89 lakh (ex-showroom, Delhi).
Hyundai too have announced a similar price hike for their models. The price hike for Hyundai will be effective across their entire model range. The exact extent of the price hike will be announced in January and it will vary based on the model, variant and fuel type. Hyundai has stated the rise in input and material costs to be the reason for the price hike.
Maruti Suzuki too announced a price hike for select models in their lineup a few days ago. The Maruti Suzuki price hike will vary from model to model, but the company is yet to announce the exact percentage for each model. We however expect the price hike to be marginal and not significant. Maruti too says that the primary reason for this price hike is rising input costs.
Price revisions at the beginning of a new year has almost become a norm in the automotive industry. Almost every manufacturer marginally increases the price of their vehicles at this time of the year or within the first two months of the coming year. This is primarily due to exchange-rate fluctuations and rising input and material costs.