Maruti and Audi hikes auto prices from January 2022
Audi said its price increase effective from January 1, 2022 will be up to 3% across its entire model range owing to rising input and operational costs
Maruti Suzuki India along with luxury carmakers Mercedes-Benz and Audi said on Thursday that they will increase prices from January to offset rising input and feature enhancement costs. While the price rise will vary for different models, Mercedes-Benz India said it is hike will be on select models increased by up to 2% , owing to feature enhancement and rising input costs.
On the other hand, Audi said its price increase effective from January 1, 2022 will be up to 3% across its entire model range owing to rising input and operational costs.
MSI said in a regulatory filing that in the past one year, the cost of company’s vehicles continue to be adversely impacted due to increase in various input costs. Therefore, it has become imperative for the company to pass on some impact of the above additional costs to customers through such a hike.
The company noted that the automaker has been under pressure since last year but avoided taking big price hikes as it would have impacted the demand scenario in the market. The price increase is the last resort for the company as it does not like to burden the consumers.
The company was under the impression that the prices of commodities would soften, but that did not happen. From the company’s end, it had reduced costs, increased efficiencies, but that was not enough and eventually they had to hike the price.
Currently, the company is now working out the quantum of the hike, which varies from model to model.
It noted that the huge increasing in commodity prices, the price hike would be substantial. The auto major has already hike the vehicle prices three times this yeat, by 1.4% in January, 1.6% in April and 1.9% in April and 1.9% in September, taking the total quantum to 4.9%.
The company sells a range of models, starting from hatchback Alto to SUV S-Cross with prices starting from Rs 3.15 lakh to Rs 12.56 lakh respectively.
Mercedes Benz and Audi to increase cost
Mercedes-Benz noted that in order to offset the costs for feature enhancements amidst rising inputs costs, it will upwardly revise the ex-showroom price of only select models.
The price revision ranging up to 2% will be in effect from January 1, 2022. Similarly, Audi announced a price increase of up to 3%, across its entire model range, effective from January 1 next year, owing to a rise in input and operational costs.
The Audi India strategy focuses on a sustaibable business model. To offset rising input and operational costs, a price correction is necessary.
In a statement, the company said that the new price range of our select vehicles will ensure the brand’s premium price positioning thereby, assuring sustainable growth both for the brand and our dealer partners.
It added that the continuing focus on customer centricity, the company has ensured that the impact is as minimal possible.