It is now the turn of Tata Motors and Mahindra and Mahindra. Both automakers have increased prices of the models with immediate effect. Tata Indica and Indigo models have become costlier by Rs. 5000-8000 while M&M model Scorpio is costlier by Rs 6400-9300. Xylo is now pricier by Rs. 4600 and Bolero by Rs 4800.
“Primary reason for hike, which is across all our vehicles, is the rise in prices of the inputs required to make vehicles,” said Arun Malhotra, senior VP, Automotive Sector, Mahindra and Mahindra.
Honda Siel Cars India Limited, Toyota and Maruti have already increased prices of their models in India by up to Rs 10,000. Moreover, Hyundai is also planning to hike prices of its popular models in the country. While rising costs of steel and rubber are the main reasons for the Indian automakers, the fluctuating value of Yen is also a cause for the Japanese competitors.
“Yen has been appreciating since the last few months and with the import content in our cars ranging from 24% in Honda City to 100% in Honda CRV, appreciating Yen has increased the costs of our manufacturing”, said Jnaneshwar Sen, marketing vice-president, Honda Siel Cars India.
