Tata Motors, Kia India to hike vehicle prices from January 2025

Tata Motors said it will hike the price of its passenger vehicle portfolio, including electric vehicles, by up to 3% from January next year.

New Delhi: Tata Motors and Kia India on Monday announced plans to hike vehicle prices from January to offset the impact of rising input costs.

Tata Motors said it will hike the price of its passenger vehicle portfolio, including electric vehicles, by up to 3 per cent from January next year.

The price hike is being undertaken to partially offset the rise in input costs and inflation, the Mumbai-based auto major said in a statement.

"Effective January 2025, the price increase will vary depending on model and variant," it added.

Tata Motors sells a range of passenger vehicle models ranging from Tiago hatchback to SUVs Harrier and Safari.

Kia India, which sells models like Seltos and Sonet, said it will increase prices of its entire model range by 2 per cent from January.

The price hike, effective from January 1, 2025, is primarily due to rising commodity prices and escalating supply chain-related costs, the automaker said in a statement.

Kia India Senior Vice President – Sales and Marketing - Hardeep Singh Brar said the company is committed to delivering technologically advanced vehicles of the highest quality to customers.

"However, due to the persistent rise in commodity prices, unfavourable exchange rates, and increased input costs, a necessary price adjustment has become unavoidable," he added.

Despite these challenges, Kia is absorbing a significant portion of the cost increase, minimising the financial impact on customers, so they can continue to enjoy their favourite models without a major dent in their pockets, Brar said.

Market leaders Maruti Suzuki and Hyundai Motor India have announced plans to hike vehicle prices next month.

The country's largest carmaker aims to raise prices by up to 4 per cent from January due to rising input costs and operational expenses.

Rival Hyundai Motor India is also looking to increase the prices of its model range by up to Rs 25,000 from January 1, 2025.

The price increase has been necessitated due to an increase in input costs, adverse exchange rate and increase in logistics costs, the maker of Verna and Creta said.

Mahindra & Mahindra said it will hike prices of its SUVs and commercial vehicles by up to 3 per cent from January.

The adjustment is in response to the rising costs due to inflation and increased commodity prices, the automaker stated.

Similarly, JSW MG Motor India said it will increase prices of its entire model range by up to 3 per cent from next month.

Honda Cars India is also considering a price increase but is yet to decide on the quantum.

Besides, luxury car market leader Mercedes-Benz India plans to increase prices by up to 3 per cent from January.

Prices of Mercedes-Benz cars will be revised in the range of Rs 2 lakh for the GLC to Rs 9 lakh for the top-end Mercedes-Maybach S 680 luxury limousine.

Audi India said it will increase prices by up to 3 per cent across the model range due to an increase in input and transportation costs.

Similarly, BMW India is looking to increase prices of its model range by up to 3 per cent from January next year.