Tata Motors and Kia India announced on Monday that they will raise vehicle prices across their portfolios starting January 2025. This move follows similar price hikes recently announced by major players such as Maruti Suzuki, Hyundai, and Mahindra & Mahindra.
The automakers are taking this step to mitigate rising input costs, even as the passenger vehicle market slows. In November, car sales saw a 14% year-on-year decline.
Tata Motors confirmed a 3% price hike on its models, while Kia India plans to increase prices by 2%.
Tata Motors, one of India’s top vehicle manufacturers, announced that the 3% price increase, effective January 2025, will apply across its entire passenger vehicle portfolio, including electric vehicles (EVs). The price adjustments will differ depending on the model and variant.
The company explained that the hike is essential to partly counter rising input costs and inflation.
Tata Motors stated, “While we remain dedicated to providing high-quality vehicles, this price revision is necessary to maintain operational viability in the face of challenging economic conditions.”
Kia India has cited rising commodity prices, unfavorable exchange rates, and increasing supply chain costs as reasons for its decision to raise prices.
Hardeep Singh Brar, Senior Vice President of Sales and Marketing at Kia India, explained, “The continuous rise in costs has made a price adjustment unavoidable.”
He also mentioned that Kia would absorb a significant portion of the increased costs to reduce the financial burden on customers.
Earlier, other automakers including Hyundai Motor India, Maruti Suzuki India (MSIL), Mahindra & Mahindra (M&M), and JSW MG Motor had raised prices across their model ranges.
In the luxury car segment, brands like Audi, Mercedes-Benz, and BMW announced a 3% price increase on their entire portfolios, set to take effect on January 1, 2025.
