Srinagar, Dec 21: The automobile companies are planning to raise prices of vehicle from January 2021 which could upset the rising demand after the coronavirus lockdown.
Maruti Suzuki India Ltd, Hero MotoCorp Ltd, Honda Motor Co. and Mahindra and Mahindra Ltd (M&M) have announced that they would increase vehicle prices from January citing the need to offset rising commodity prices and other input costs, a report by The Hindustan Times, said.
While Bajaj Auto Ltd and Royal Enfield recently raised prices.
“While low discounts post-Diwali this year suggest a mix of lower inventory and sustained demand momentum in the market, price hikes can certainly deter customers from walking into the showrooms. That said, the market has been down for over two years, and this fiscal has been the toughest for the industry ever,” one of the executives cited above said, requesting anonymity.
Commercial vehicles, passenger cars and two-wheelers have seen a sharp rise in price upto as much as 15% as the industry transitioned to Bharat Stage VI (BS VI) emission norms, which came into effect from April 1, 2020.
Automakers began rolling out BS VI-compliant vehicles last fiscal, and Maruti Suzuki was among the first to introduce BS VI-compliant versions of its high-selling models last year.
Meanwhile, metal prices rose upto 31% since July 1, copper, lead, aluminium, zinc and crude prices have risen 32%, 16%, 28%, 40% and 24%, respectively, during the same period, as per a report by Bloomberg.