New Delhi:
If you are planning to buy a car, then buy quickly, because the prices of cars are going to increase huge from April 2025. The country’s largest car manufacturer Maruti Suzuki India (Maruti Suzuki India Ltd.) has decided to increase the price of its vehicles by 4%. Due to the cost of rising raw materials and operational expenses, the company has to take this step. Earlier in January and February, Maruti also increased prices.
But not only Maruti, but veteran automobile companies like Tata Motors, Mahindra, Hyundai, Kia, Skoda, MG motor, Jeep, Citroen, Mercedes-Benz, BMW and Audi are also going to increase prices. Many companies have increased from 2% to 4% from January itself and now in April, there is going to be another shock to the customers.
Why are cars prices rising?
Car companies are giving many reasons behind increasing prices, including increase in prices of raw materials, increase in import duty (tariff) and interruptions in supply chains.
- Cost of raw materials increased: The cost of manufacturing of vehicles is increasing due to rising prices of steel, aluminum, copper and other metals.
- Operational expenses increase: Expenditure like production, logistics has increased, due to which companies have to increase prices to maintain their profits.
- Impact of global market: Economic instability in big markets like China, America and Europe is also affecting the Indian auto industry.
- Focus on electric vehicles: Auto companies are investing heavy in EV segment, which is increasing the prices of petrol and diesel cars.
Which vehicles of Maruti will increase?
Maruti Suzuki has made it clear that prices will increase by 4% from April 2025, but it will depend on different models. Maruti Suzuki’s cheapest car can increase the prices of all models from Alto K10 to the most expensive inwrito MPV.
During the increase in January 2025, the prices of cars increased from Rs 1,500 to Rs 32,500. This time too, different effects will be seen on different models.
How was the company’s performance in the last quarter?
Despite the rising cost and the market challenges, Maruti Suzuki has performed well. Maruti’s net profit increased by 16% to Rs 3,727 crore in the October-December quarter. On a standalone basis, the company’s profit increased by 13% to Rs 3,525 crore. Suzuki Motor Corporation, which is Maruti Suzuki’s parent company, has prepared a new strategy for 2025-2030, in which India has been described as the most important market.
The company has set a target of production of 4 million cars in India and is planning to get 50% market shares back.