Auto firms to raise prices from April as costs, regulations squeeze margins

Industry experts believe price hikes are influenced by multiple factors, including the rising costs of electronics, regulatory compliance requirements, and premiumisation trends

Indian automotive manufacturers are set to implement price hikes across vehicle portfolios from April 2025, amid escalating input costs and regulatory pressures. Major players like Maruti Suzuki, Tata Motors, Hyundai, Honda Cars India, Kia, and Mahindra & Mahindra have announced price increases ranging from 2 to 4 per cent. 

 

As net profit margins for original equipment manufacturers (OEMs) have mostly remained flat in the last nine months, analysts believe that, without these price hikes, profit margins would come under considerable squeeze.

 

Data from Bloomberg highlights the rising costs of key raw materials. The London Metal Exchange (LME) index climbed 11.9