Tata Motors, Kia join other automakers in price hikes starting Jan 2025

In line with recent price hike announcements by auto companies in India, two more -- Tata Motors and Kia India -- have announced to increase prices across their product lines from January 2025.

Tata Motors, in a statement, says the company will take a price increase of up to 3% across its passenger vehicles portfolio, including EVs. "Effective January 2025, the price increase will vary depending on model and variant, and is being taken to partially offset the rise in input costs and inflation."

Kia India, on the other hand, announced up to a 2% price hike across the product lines. Kia said the price hike is primarily due to rising commodity prices and escalating supply chain-related costs.

“At Kia, we are committed to delivering exceptional, technologically advanced vehicles of the highest quality to our valued customers. However, due to the persistent rise in commodity prices, unfavourable exchange rates, and increased input costs, a necessary price adjustment has become unavoidable. Despite these challenges, Kia is absorbing a significant portion of the cost increase, minimising the financial impact on our customers, so they can continue enjoying their favourite Kia vehicles without major dent on their pockets,” said Hardeep Singh Brar, senior vice-president, sales and marketing, Kia India.

Additionally, Mahindra & Mahindra (M&M) last week announced a price increase for its sport-utility vehicles (SUV) and commercial vehicles (CV) by up to 3%, effective January 2025. The company also attributed it to adjustment in response to the rising costs due to inflation and increased commodity prices.

JSW MG Motor India also announced a price hike of up to 3% across its entire product portfolio effective January 2025, attributing it to "continuously rising input costs and other external factors".

Before that, India’s biggest carmaker Maruti Suzuki India Ltd had said it planned to increase the prices of its cars from January 2025 owing to rising input costs and operational expenses. Maruti said the price increase was expected to be up to 4% and would vary depending on the model.

Hyundai Motor said it would increase prices across its model range effective from January 1, 2025. Hyundai said the price increase would be done across models and the extent of the increase would be up to ₹25,000. “With the sustained increase in input cost, it has now become imperative to pass on a part of this cost escalation through a minor price adjustment,” said Tarun Garg, full-time director and chief operating officer, HMIL.