Four automobile firms — Tata Motors, Mahindra & Mahindra (M&M), Isuzu Motors India and BMW Group India — on Monday announced an increase in prices of their products, passing on rising input costs to consumers.
Industry analysts attributed this is to the sharp rise in prices of commodities that go into the manufacture of automobiles.
“All input costs have gone up substantially. Be it steel, rubber [or] copper, all commodity prices have go up,” said Jinesh Gandhi, auto analyst, Motilal Oswal Financial Services.
“The magnitude of the price hike is such that the auto companies do not have the capacity to absorb even half of it,” he added.
The farm equipment sector of Mahindra & Mahindra said it would raise prices for its tractors across models effective January 1, citing the rise in commodity prices..
Tata Motors said there would be a price increase across its commercial vehicle range, effective January 1. “The steady rise in material and other input costs, impact of forex and transition to BS6 norms, have cumulatively escalated the cost of manufacturing vehicles,” it said in a statement.
Increasing by ₹10,000
Isuzu Motors India also announced an increase in the prices of its commercial pick-up range — D-MAX Regular Cab and D-MAX S-CAB — by approximately ₹10,000 with effect from January 1.
BMW Group India said it would introduce the revised 2021 pricing for all BMW and MINI models effective January 4. Prices will increase by up to 2% across the portfolio, it said.
