Attention Car Buyers! Vehicle Prices To Increase From April 2018
After hiking vehicle prices from January 2018 to offset the rising input costs, Indian automobile manufacturers have again announced to increase car prices starting from 1 April 2018.
This time the reason behind the price increase has again been attributed to rising input costs.
Input cost is the set of costs that are incurred to create a product or service. Costs of direct materials, direct labor, and factory overhead all fall under this category.
Tata Motors would be increasing prices of its entire passenger vehicles range by up to Rs 60,000 (depending on the model).
According to Mayank Pareek, President, Passenger Vehicle Business, Tata Motors, “The rising input costs, changing market conditions and various external economic factors, have compelled us to consider the price increase but we are optimistic on maintaining our growth trajectory in the coming year on the back of our robust product portfolio like Tiago, Hexa, Tigor and Nexon.”
Prices of Nissan and of Datsun vehicles will also increase by up to 2 per cent across all the available models.
Jerome Saigot, Managing Director, Nissan Motor India said, “Due to rising input costs, we will be increasing the price of our Nissan and Datsun cars with effect from 1 April, 2018. We are confident that our cars will continue to offer excellent value and choice to our customers.”
Nissan currently offers the Micra, Sunny and the Terrano and Datsun offers the Datsun GO, GO+ and redi-GO to Indian customers.
Luxury carmaker Audi India will also be raising the prices of its vehicles owing to the increase in custom duty and introduction of social welfare surcharge in lieu of an education cess (which is higher than the erstwhile cess) in the Union Budget.
The raise will be across the entire model range of Audi by up to 4 per cent; ranging from Rs 100,000 to Rs 900,000.
“We have tried to absorb the impact of the increase in the customs duty and have minimized the price hike for our customers. To minimize the impact of the price increase, we are also offering various Audi Finance schemes along with sales and service benefits for our discerning customers who aspire to join the Audi Family,” said Rahil Ansari, Head, Audi India.
“While luxury car industry is undertaking several initiatives and investment to make the dream of owning a luxury vehicle more realistic for all, we also expect the government to support this industry. There is no doubt that increase in car sales would definitely help the Government in garnering more accumulated taxes,” added Ansari.
