Purchasing A New Car Is Becoming More Expensive This Year

Planning to buy a car? Be prepared to shell out extra as most carmakers have announced price hikes across their range of vehicles starting this year.

Hyundai announced it will hike prices across the board by up to Rs 1 lakh depending on the model. Homegrown carmaker Tata is set to increase prices by as much as Rs 25,000, while prices of passenger vehicles from Nissan and Datsun would be hiked up to Rs 30,000. Toyota, Renault and Honda are set to hike prices by up to 3 percent across their line-ups. German carmaker Volkswagen too, might raise prices by 3 percent, according to an industry source. Chevrolet is set to raise prices by 1-3 percent depending on the variant.

Luxury carmaker Mercedes-Benz has announced its decision to raise vehicle prices by 2 percent. Automakers cited the increase in cost of raw materials such as rubber, steel and aluminium, along with the fluctuating exchange rate, and increasing operating expenses as masons for this hike.

While a hike in vehicle prices at the beginning of the year is standard practice, it could be detrimental to growth this ti me around as demand has already slowed down with the demonetisation drive. Buyer sentiments am subdued and dealerships have also recorded a significant decline in footfalls and enquiries.

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