New Delhi, March 24: Car prices are likely to rise next month as the industry looks to pass on the higher operational costs to buyers just a month after slashing prices when the government cut the excise duty in the interim budget.
Mahindra & Mahindra, Honda Cars India and Tata Motors today said a hike was a possibility to offset higher input and operational costs.
“We are actively contemplating increasing the prices of our vehicles in April because of the increase in input and operational costs,” Mahindra & Mahindra chief executive (automotive division) Pravin Shah said.
The company hasn’t decided by how much prices would be raised.
“We have not yet taken a final decision on the amount and timing, but this is a matter we are seriously considering right now. It will happen for sure in April,” Shah said.
Sources in Honda Cars India said the company was considering a hike next month. “The discussions are going on, there is a possibility,” the source said.
Tata Motors said it might increase prices of passenger vehicles by 1 to 2 per cent.
Last month, Mahindra had reduced the prices of its cars between Rs 13,000 and Rs 49,000 after the reduction of excise duty by the government.
Honda Cars India had also cut prices by as much as Rs 44,741.
The duty cuts had raised sales last month, the first time since September.
Maruti Suzuki India is likely to launch the sedan Ciaz by August this year. The car will compete with the Hyundai Verna and the Honda City.
According to sources in the company, the Ciaz, which was unveiled at the Auto Expo 2014, will replace the SX4.
Though the company has not announced the price of the vehicle, sources said it was likely to be priced between Rs 8 lakh and Rs 12 lakh.
According to sources, the Ciaz may come with the same 1.4-litre K-series petrol engine as the one in the multi-purpose vehicle Ertiga. It could also come with a diesel engine. The sedan may be available in an automatic transmission variant as well.