If you are planning to buy a car in FY 2025-26, then this news is for you. In a few months of the beginning of the year, car companies have raised prices for the second time, causing a shock to the customers.
This increase has come at a time when the auto sector is already facing slowdowns, especially the sale of entry-level cars is seen to be a major decline.
Why did prices rise? These are 7 big reasons
- Prices of parts increased – aluminum has become expensive by 10.6% and rubber 27%.
- The rupee has weakened against the dollar, making imports expensive.
- The cost of fuel and transport has increased.
- Production expenses have now become difficult for companies to bear themselves.
- The import of CKD and CBU models (for companies like BMW, Hyundai) has now become more expensive.
- International instability and interruption of supply chain (eg effect of American policies).
- Companies say that the increase has been kept “balanced”, so that the sales have less impact.
Which companies increased the price?
Almost all major car companies – Maruti Suzuki, Hyundai, Honda, Mahindra, etc. – have raised their models prices.
Entry-level segment is getting some relief-discounts
However, in view of the declining sales of entry-level cars, companies and dealers are offering strong discounts and offers.
According to FADA, sales in the passenger vehicle segment decreased by 7.8%, especially in rural areas where inflation is more visible.
Where is getting discounts?
- Maruti Suzuki: Discount on S-Presso to Baleno
- Honda: Offers up to ₹ 73,000 on City Model
- Mahindra: Exchange bonus up to ₹ 3 lakh on FY2024 Thar Roxx model
- Other companies are also offering discounts ranging from ₹ 2,500 to ₹ 75,000, according to the model
The new tax slab and discounts of companies can give some relief to the entry-level market, but buying a car overall is no longer a cheaper deal.
Buying the Post car is now more expensive – the second time increase in prices in the new financial year first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
