New Delhi. After Maruti Suzuki, Tata and Kia, on Wednesday, Hyundai and Honda also announced to increase the price of their cars in the Indian market. Prices will be increased from April 01, 2025.
The reason given is that due to the increase in the prices of raw materials, it is no longer possible to sell cars at the current price level. But according to people associated with these car companies and automobile experts, the real reason is that car sales have been declining for the last few months and despite huge discounts from the companies, new buyers are not coming forward. In such a situation, it is a big challenge for the companies to maintain the level of profit. Therefore, despite the danger of further decline in car sales, prices are being increased so that fewer cars are sold but the profit level improves.
Severe decline of seven percent in February
In February 2025, automobile sales in India have been close to 18.99 lakh with a huge decline of seven percent. Passenger car sales have declined by up to 10 percent. Two-wheelers, three-wheelers, tractors, commercial vehicles have all registered a decline. Whereas in January 2025, automobile sales had registered a growth of 6.6 percent.
Since February, car companies are also giving huge discounts on some selected models of cars, but based on the kind of bookings being done and inquiries from customers, it is believed that the pace of sales is going to remain very slow for the next two-three months.
Hyundai car prices increased
Hyundai Motor India said on Wednesday that the prices of its cars will increase by three percent from April 2025. In the quarter ended 2024, Hyundai’s revenue declined by 1.3 percent and net profit by 19 percent.
Maruti Suzuki’s net profit has increased by 16.2 percent in the said quarter, but maintaining it in the January-March 2025 quarter is a big challenge. Car companies have said that steel prices have been rising continuously and have been borne for a long time but now it is difficult to do so. The current price of cars is influenced by the steel prices of six months ago. The reality is that in the last one month, steel prices in the domestic and international markets have increased more than six months ago.
