Mumbai: Buying a car in India will become costlier from April 1, as automakers plan to increase prices by up to 2 percent. The hike will apply to all categories — from budget hatchbacks like Maruti Suzuki Wagon R and Tata Tiago to compact SUVs such as Hyundai Venue and Maruti Brezza, as well as premium and luxury cars.
This means buyers will see higher ex-showroom prices and also pay more on-road, including taxes, insurance and registration.
Why Are Prices Increasing?
The main reason behind the price hike is rising costs for automakers. Prices of raw materials like steel and aluminium remain high. At the same time, metals such as rhodium and palladium, used in emission systems, have seen price swings.
In addition, logistics costs are still elevated, and a weaker rupee is making imported components more expensive.
Car companies usually try to absorb these costs for some time, but when pressure continues, they pass it on to customers to protect their margins.
Discounts Likely To Reduce
Along with higher prices, buyers may also see fewer discounts. In recent months, companies offered deals to boost sales, especially in entry and mid-level cars.
From April, these offers are expected to reduce, which will further increase the final cost for buyers.
Maharashtra Buyers Face Extra Impact
Buyers in Maharashtra, especially those opting for CNG cars, may face a bigger hit. The state has increased road tax on CNG vehicles by 1 percent.
This creates a double impact — higher car prices increase the tax amount, and the higher tax rate adds more to the final cost. Popular CNG models like Wagon R, Ertiga, Brezza and Tiago could be affected the most.
Automakers Already Preparing
Tata Motors has already confirmed a price hike from April 1. Other companies like Maruti Suzuki and Hyundai are reviewing prices, while luxury brands such as Mercedes-Benz, Audi and BMW have also announced increases.
For buyers, purchasing before April could help save money, as prices and discounts are expected to become less favourable later.
