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Auto Companies Hike Prices – BS6 Phase-2 News: The BS6 Phase-2 transition is just around the corner. Its impact will also be seen on the prices of vehicles. The auto industry is preparing to hike prices. While passenger vehicle companies like Maruti, Mahindra & Mahindra, Honda, MG, Kia and Tata Motors are already working on the quantum and date of the hike, even commercial vehicle companies are announcing around 5% price hikes, according to a report. Recently, Tata Motors had decided to increase the prices of commercial vehicles by 5%.
With the BS6 phase-2 transition just round the corner, auto industry is gearing up for another round of price hikes. According to sources in the industry, the hikes this time round will be in the region of around 2-4% or roughly Rs 15,000-20,000 depending on make and model. While passenger vehicle companies like Maruti, Mahindra & Mahindra, Honda, MG, Kia, Tata Motors and others are already working on the quantum and date of the hike, even commercial vehicle players are announcing around 5% increase in prices.
BS6 Phase II will affect all vehicles
Rajeev Chaba, President & MD, MG Motor India, said, “As we speak, the price increase is happening due to BS6 Phase II and depending on the launch calendar, OEMs have already started it at 2-4%. Apart from Tata Motors, companies like Kia have also announced a price hike on Tuesday. The increase will be around 2.5% for Kia’s RDE compliant and E20-fuelled line-up of Seltos, Sonet and Keyrens. Dealer sources say that M&M had already indicated a price hike of around Rs 20,000 on its range, although no formal announcement has been made by the company yet regarding the increase. In the case of Maruti while some models and variants have already converted to RDE and E20 compliant specs, for others the hike will be in the region of 2-4%.
Honda will also increase prices
Similarly, while Honda recently launched its all-new City, company officials said that the prices for other models will go up from April due to BS6 Phase II. For Tata Motors which on Tuesday announced a price hike of up to 5% on its commercial vehicles. The passenger vehicle range has already transitioned to BS6 Phase II in February. A Tata Motors spokesperson said that part of the cost increase arising from this regulatory change has been partly passed on in the price increase announced in February (about a 1.2% increase) and the remaining part can be passed on in the next price increase. A company spokesperson said that apart from Tata Motors, Ashok Leyland is also considering a price hike, although it has not yet fixed any timeline on this matter.
Their prices will remain stable
The price increase will be the highest for luxury car companies, although most of these models are already RDE compliant. Mercedes-Benz India is hiking prices by up to 5 per cent from April 1 on account of foreign exchange and input costs. Others like Lexus are in watch mode. Naveen Soni, President, Lexus India, said, “Our vehicles are already BS6 Phase II compliant, so there will be no increase in prices. We are closely monitoring the situation with respect to exchange rate, material and shipping cost inflation and we want to minimize any cost transfer to the customer until it becomes mandatory.
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