cars become more expensive in 2022
While consumers are worried about the rise in fuel prices, automakers have also signaled that they will increase car prices. The main reasons for this increase are the increase in the price of raw materials required for the manufacture of vehicles and the shortage of microchips used in vehicles.
Cars Become More Expensive From 2022
Maruti Suzuki was the first to raise the price of vehicles due to the increase in the price of raw materials required for the manufacture of vehicles. Following them, Mercedes and Audi have also announced price hikes from next month. Now Tata Motors, Honda and Renault are also considering raising vehicle prices. As a result, the auto sector as a whole will now be hit by the price hike, which will affect consumers who buy vehicles.
Petrol and diesel prices have already risen sharply due to rising crude oil prices in the international market. As a result, consumers have turned their backs on vehicle purchases.
While CNG and electric vehicles are currently preferred, on the other hand, the cost of raw materials for vehicle manufacturing has increased significantly. Therefore, auto companies have to bear a heavy burden. At the same time, it has to bear the brunt of the shortage of microchips.
In this situation, Maruti Suzuki decided to increase the price of its vehicles from January 2022. The general public is more attracted to Maruti Suzuki vehicles. As Maruti has a large stake in the automotive industry, it is clear that its decision will be taken by other auto companies as well.
Also luxury car makers like Mercedes and Audi have announced price hikes for their cars. Vehicle companies have adopted a formula to shift the burden of production costs to consumers. Now Tata Motors, Honda and Renault are also considering raising vehicle prices. Although the companies have not yet announced this, they have received indications from them.
Shailesh Chandra, Chairman (Passenger Vehicle Business), Tata Motors, said that with the rise in raw materials and other costs, the only option for companies is to raise prices. It is unknown at this time what he will do after leaving the post. But it will be considered soon, he said, adding that a spokesperson for Honda Cars India said there had been a sharp rise in production costs. The only way out is to increase the price in the future.