● With input costs going up, a hike in car prices is imminent.
● Honda, Toyota, and Tata Motors have already announced prices hikes.
● Maruti Suzuki had already hiked prices last month.
The input commodity costs such as steel, aluminium, and other metals are at their highest for some months now. The costs inevitably pass on to the ultimate consumer as it impacts the manufacturing cost. Hence, various car manufacturers, including Honda, Tata Motors, and Toyota, have announced an increase in car prices from August 2021.
Honda Cars India announce price hikes
Honda Cars India had previously raised car prices in February and April 2021 by approximately Rs 20,000 and Rs 10,000, respectively. However, the rise in input costs during the first quarter of FY 2021-22 has forced Honda to raise its car prices in August 2021. However, they have not yet announced the quantum, but it will vary between models.
Tata Motors Price Hike
Tata Motors has been more specific by announcing a price hike in all their car models by up to 0.8%, depending on the variant. The price hike takes effect from August 03, 2021. However, the company has offered protection from the hike to vehicles retailed up to August 31, 2021. As the company had already hiked prices in May and January by up to 1.8% and Rs 26,000, respectively, the present hike is the third witnessed this year.
Toyota Innova Crysta to cost more.
While Toyota has not specified the hike amount, they have announced that the Toyota Innova Crysta will cost more by 2% from August 01, 2021. The vehicle had also witnessed a price hike of up to Rs 26,000 in April 2021.
Other Car Manufacturers
The high input costs have impacted the overall manufacturing costs of cars. As a result, Maruti Suzuki had hiked the prices of Swift and all its CNG models by amounts up to Rs 15,000 last month.