From 2018 Onwards Cars To Cost More; Discounts & Offers Flourish In December

If you are planning to buy a car, then December 2017 is the month for you as from 1 January 2018 onwards carmakers will increase the prices of vehicles.

In this regard, manufacturers are offering heavy discounts and offers in December 2017 across their model range.

The hike in prices during new year is a routine for automakers; generally done to offset the changes in input cost i.e., the cost of base metals.

Bengaluru based Toyota Kirloskar Motor is going to hike prices across its models by up to 3 per cent. The company considered the price rise after reviewing input and freight costs periodically, which is also a general industry phenomenon.

“There has been an increase in the cost of manufacturing of vehicles. Frequent fluctuation in the global commodity prices and foreign exchange rates have continued to impact our input costs, from both domestic as well as import fronts. Toyota has been absorbing the additional costs all this while, protecting the customers from price increase,” the company said in an official statement.

For its customers, Toyota is having its ‘Remember December Campaign’ this month.

Under ‘Remember December Campaign’, customers can avail schemes like 100 per cent on road financing, interest rates starting at 4.99 per cent, special EMI package. It also comprises of benefits ranging from Rs 40,000-Rs 90,000 varying from model to model across regions, also including additional benefits for government and corporate employees.

The price rise for both Tata Motors passenger vehicles and Honda Cars India will be up to Rs 25,000.

According to Mayank Pareek, President, Passenger Vehicle Business, Tata Motors, “The changing market conditions, rising input costs and various external economic factors have compelled us to consider the price increase. 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 the recently launched Nexon.”

Both the companies have also announced offers for its customers for December 2017. 

Tata Motors' 'Mega Offer Max Celebration' is offering insurance at Re 1 exchange offers. Under this scheme, customers can get benefits up to Rs 78,000 in Hexa, Rs 26,000 in Tiago, Rs 32,000 in Tigor, Rs 68,000 in Zest and Rs 100,000 in Storme.

While Honda is providing different benefits up to Rs 150,000 across its model range, barring WR-V and Accord Hybrid. While Honda WR-V Starts at Rs 766,539, Honda Accord Hybrid is available for Rs 43,21,237.

Prices of Ford’s cars will rise up to 4 per cent, which means newly launched Ford EcoSport is expected to see a revision of up to Rs 30,000 across variants. The minimum price increase for Figo hatchback is expected to be Rs 20,000 and the same for Endeavour SUV will go up to Rs 1.2 lakh.

According to some reports, all Ford cars except Mustang will witness a price hike.

'Ford December Bonanza', apart from providing benefits up to Rs 67,000, will also offer 7.99 per cent interest rate as well as assured gifts.

Isuzu Motors India will increase prices across its model range of Pick-ups and SUVs between 3 and 4 per cent. This means that the prices will go up by approximately Rs 15,000 on the D-Max (Regular Cab – Commercial Vehicle) to Rs 1 lakh on the premium mu-X (SUV) – ex-showroom.

Czech carmaker Skoda Auto India’s price revision will reflect an increase of 2 per cent – 3 per cent across the entire model range. The changing market conditions and various external economic factors are driving this price impact.

The price rise for Mahindra & Mahindra’s passenger and commercial vehicles and for Renault India stand within a range of up to 3 per cent. However, for Renault the price hike will be applicable on Kwid, Duster and Lodgy.

Renault India's December offers will also be available on the above three vehicles. Apart from special benefits up to Rs 1 lakh, there will be schemes like 'Test Drive and Win a Car Daily', and other finance offers, exchange bonus and insurance benefits.

Commenting on the price hike Rajan Wadhera, President - Automotive Sector, Mahindra & Mahindra said, “We have been holding back on price hikes and absorbing the higher input costs for a while, but with the increase in commodity prices we will have to take a price increase.”

Volkswagen has also announced an upward revision of the prices for its carlines. The increase of up to Rs 20,000 will be depending on the model across the Volkswagen product range in India.

Commenting on the announcement, Steffen Knapp, Director, Volkswagen Passenger Cars said, “The price increase is essential on account of several external economic factors as well as fluctuations in the global commodity price and local input cost and is in line with industry. The impact will be across the product range in India.”

Hyundai Motor India has announced a raise of up to 2 per cent. Commenting on the Price increase, Rakesh Srivastava, Director - Sales & Marketing, Hyundai Motor India said, “ We have been absorbing the increase in input and material costs but now are constrained to increase the prices up to 2 per cent.”

Maruti Suzuki India announced a price increase ranging from Rs 1,700 to Rs 17,000 across models, owing to increase in commodity and other administrative and distribution costs. The new prices are effective from 10 January 2018.

Nissan Group of India has also announced price revision across its Nissan and Datsun range of models. The prices of Nissan and Datsun models will rise by up to Rs 15,000.

Jerome Saigot, Managing Director, Nissan Motor India said, “With the rise in input and manufacturing costs, Nissan has decided for a price hike across all Nissan and Datsun models with effect from January 1, 2018. The revised pricing will help us to optimize our manufacturing efficiency and continue to serve our customers pan India.”

It is not just the car companies, even two-wheeler makers are also going for a price revision from January 2018 on wards. Hero MotoCorp will be increasing the ex-showroom prices of its motorcycles to partially off-set the rising input costs. The price hike translates to about Rs 400 per model. The exact quantum of the increase will vary, basis the model and the specific market.