Renault on Wednesday joined a long list of passenger vehicle manufacturers in announcing a price hike across its model range from January of the new year onwards. Renault currently offers models like Kwid, Kiger and Triber MPV in the market here.
Renault has put the blame for the increase in prices from January on a bid to partially offset the impact of constant increases in input costs, largely driven by pricier commodities, fluctuations in foreign exchange rate, inflation and also due to regulatory obligations. Some or all of these factors have also been cited by other car manufacturers who have confirmed a price hike.
So far, brands across segments and price brackets to have announced an upcoming price hike from 2023 onwards include Maruti Suzuki, Mercedes-Benz, Audi, among others. An increase in prices would usually translate into lower sentiments among buyers but most OEMs may be banking on large order banks to ensure that the current demand for cars in the Indian domestic market remains robust.
While demand for vehicles has been on the rise since pandemic-related factors began to fade away, production and supply has not been able to keep pace. SUVs continue to dominate the market but most popular models have a waiting period which is anywhere between a month to as high as 18 months. The recently-concluded festive period saw most manufacturers do brisk business but experts continue to warn of potential risks of keeping customers waiting for prolonged periods.