Car Prices Surge Amid Rising Costs and Safety Demands

Carmakers are raising vehicle prices due to increased input costs and mandatory safety requirements, despite sluggish demand. Major players like Maruti Suzuki, BMW, Hyundai, and others plan hikes starting April, driven by consumer demands for enhanced safety features and compliance with new regulations.

A growing trend of rising input costs and mandatory safety requirements is prompting car manufacturers to increase prices, despite facing sluggish market demand. Industry giants, including Maruti Suzuki, have announced price hikes ranging from Rs 2,500 to Rs 62,000 starting April 8, marking the second price adjustment this year.

Similarly, BMW Group India has increased prices by 3 percent on select models, citing exchange rate fluctuations and rising input costs as key factors. Other major carmakers like Hyundai, Tata Motors, Kia India, and Honda Cars are also set to raise prices in April.

Industry experts attribute these price increments to the need for integrating enhanced safety features, such as six airbags across all variants, and new regulatory demands like reinforced rear seats. While these changes aim to enhance passenger safety, they are contributing to cost burdens that manufacturers partially pass on to consumers.

(With inputs from agencies.)