Kia, Tata Motors announce price hikes from Jan due to rising input costs

Maruti, Hyundai and Mahindra & Mahindra (M&M) have already announced to increase prices

Tata Motors and Kia India on Monday announced to increase prices across their vehicle portfolios starting January 2025, close on the heels of a similar move by other key players like Maruti, Hyundai and Mahindra & Mahindra.

 

The automakers are biting the bullet to offset the rising costs at a time when sales of passenger vehicles have hit the slow lane. Car sales plunged 14 per cent year-on-year in November.  

 

On Monday, Tata Motors announced that it has decided to increase prices of its offerings by 3 per cent, while Kia India’s cars will become 2 per cent dearer.

   

India’s leading vehicle manufacturer, Tata Motors, revealed that the price hike will be implemented across its passenger vehicle portfolio, which will also include electric vehicles (EVs). The price increase of 3 per cent, effective January 2025, will vary by model and variant.

 

The company said the hike was necessary to partially offset rising input costs and inflation.

 

“While we remain committed to offering high-quality vehicles, the price revision will ensure continued operational viability amidst challenging economic conditions,” Tata Motors stated.

 

Similarly, Kia India attributed this move to rising commodity prices, unfavourable exchange rates, and escalating supply chain costs.

 

Speaking on this, Hardeep Singh Brar, Senior Vice President-Sales and Marketing, Kia India, said, “The persistent rise in costs has made price adjustment unavoidable.”

 

He added that Kia would absorb a significant portion of the increased costs to minimise the financial impact on customers.

 

Earlier, Hyundai Motor India, Maruti Suzuki India (MSIL), Mahindra & Mahindra (M&M) and JSW MG Motor had increased the prices across their model range.

 

In the luxury car market, players such as Audi, Mercedes-Benz and BMW had announced a price hike of 3 per cent on their entire model ranges which will also be effective from January 1, 2025.