Automobile manufacturers in India are set to increase prices for new vehicles from January onwards, due to rising costs.
This price hike is very likely to be across the range. Manufacturers are increasing prices after a long time, when poor sales and a hurt market prevented them from increasing prices for cars.
Although the automobile market is still suffering in India, rising costs and the discounts that were offered for new vehicles have had an impact with profits.
India's largest carmaker, Maruti Suzuki is hiking prices after 14 months. South Korean car manufacturer Hyundai is hiking prices as well.
Hyundai is likely to increase prices by INR 5,000 to 25,000.
One of the biggest factors that kept manufacturers from increasing prices was the cut in excise duty. Initially valid only till June, it was extended till December.
If the government is unable to extend this cut in excise duty, price hikes may go much higher. Imported brands might have a hike of up to INR 5 lakh.
The auto industry in India, has been asking the government to extend the cut in excise duty.