As the new fiscal year approaches, the auto industry is gearing up for another price hike due to stricter emissions standards. Typically, automakers increase vehicle prices starting on April 1. This time, high inflation and regulatory requirements are driving up prices.
Several automakers have raised their vehicle prices to comply with new environmental regulations, including Tata Motors, Maruti Suzuki, Honda, and Hero MotoCorp.
As part of phase two of the BSVI standards, the Indian auto industry is gearing up to meet stricter emissions standards.
As of April 1, vehicles must have an onboard diagnostic (OBD2) device to monitor real-time emission levels.
In a statement on March 23, Maruti Suzuki India announced it would raise prices in April in order to partially offset inflation and comply with regulatory requirements.
In its announcement, the automaker did not specify how much the price hike would be.
As a result of overall inflation and regulatory requirements, the company continues to experience increased cost pressure. Although the company makes every effort to reduce costs and partially offset the increase, it has become imperative to increase prices in order to offset some of the impact. According to a Maruti Suzuki exchange filing, the price increase will take place in April 2023 and vary across models.
From April 1, 2023, Tata Motors will increase the prices of its commercial vehicles by up to 5%. In an exchange filing, Tata Motors said the decision to raise prices was a result of the company’s efforts to comply with BSVI phase II emission norms.
Customers and fleet owners can look forward to cleaner, greener, and technologically superior offerings from Tata Motors as it transitions its entire vehicle portfolio to meet these standards.
Honda Cars India also increased the price of its entry-level compact sedan, the Amaze, by up to $12,000 starting April 1.
Hero MotoCorp also increased the ex-showroom prices of select motorcycles and scooters by up to 2% in line with the trend. As a result of the transition to OBD 2, the automaker said it had to revise its prices.
As a result of government schemes in the social sector and healthy agricultural outputs, the scooter maker also pointed out that rural markets are experiencing an increase in demand. The company expects the growth momentum to continue throughout the upcoming festive season.
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