Rising Costs Drive Car Manufacturers Maruti Suzuki and Audi to Announce Price Hikes in 2024

By Prasad J

In a move that could impact car buyers in India, Maruti Suzuki and Audi have announced plans to increase the prices of their vehicles starting January 2024. The decision comes in response to mounting cost pressures attributed to overall inflation and escalating commodity prices.

Maruti Suzuki, the country's leading passenger car manufacturer, revealed that while they strive to curtail costs, the unavoidable surge in expenses may necessitate a price adjustment across their vehicle models. The exact scale of this increase, however, remains undisclosed, as it is expected to vary across their range.

Highlighting similar reasons for the impending price hike, Audi, a renowned luxury carmaker, indicated a projected increase of up to 2% across its model lineup. The brand emphasized the impact of rising input and operational costs, citing the need for a price correction to maintain its premium positioning in the market.

Balbir Singh Dhillon, Head of Audi India, expressed the brand's commitment to sustaining growth for Audi India and its dealer partners while aiming to minimize the impact of the price hike on customers. The statement emphasized their efforts to strike a balance between maintaining the brand's value and ensuring sustainable business growth.

Maruti Suzuki had previously raised car prices by 0.8% across their range on April 1, 2023, and now prepares for another adjustment due to the ongoing economic pressures. Meanwhile, Audi is set to implement their price increase from January 1, 2024, aligning with their strategy to navigate supply chain challenges and maintain their premium market position.

Despite these announcements, Maruti Suzuki's shares settled slightly lower, marking a marginal dip of 0.072% to ₹10,481 apiece on Friday. However, the stock has shown a commendable 25% growth since the year's commencement, reflecting investor confidence amidst market fluctuations.

The impending price hikes by these automotive giants underscore the broader economic challenges faced by businesses worldwide, emphasizing the delicate balance between maintaining product quality, sustaining profitability, and meeting consumer demands. As the automotive industry braces for these changes, customers await further details on how these adjustments will impact their buying decisions in the coming year.