Will Car prices go up in 2021?
Will Car prices go up in 2021?

Will Car prices go up in 2021?

Car prices is something that is changing continuously, due to reasons like prices of raw material, introduction of EVs and also the Pandemic. Well let’s have a look at how it will be in the upcoming months of 2021.

Well, the pandemic has already affected the car sector, and its prices drastically. Companies like Renault, Toyota, Tata, Maruti Suzuki, Kia, BMW, Honda, Volvo, Skoda, Datsun, Nissan, Volkswagen, Hyundai and Mahindra have already spiked their price between one to four percent in the month of January 2021, some of them have also increased the prices for a second time, in the month of April 2021.This is done in the SUV and Car section. Thus, as we see there has been prices hikes twice this quarter, which is quite a spike.

Now we know this is majorly because of the Pandemic that we are going through. But what are other reason for the price?

Well one of the major reasons is the introduction of EVs, as we know EV or Electric Cars have been introduced in the market. This allows many users to think on there decisions, and make a better choice for the environment by taking a decision to go for EVs instead of Petrol or Diesel. The secondary thing that is affecting this is also the hike in the Petrol and Diesel prices. This also makes the customer think to go for EVs and not normal cars. Along with that, when we speak of the Indian Market, it also made an impact when Tesla announced that they were going to come to India. These are also major convincing factors for mostly the youth to switch from petrol and diesel to electric cars.

One more reason for this hike is also the introduction of ICE (Internal Combustion Engine), though the engine is more efficient in terms of performance and fuel, but its making and repairing takes in quiet a lot of money.

Along with this, the cost of raw material is also playing an important here. The hike in steel, aluminum and some metal prices have also hiked up the prices of manufacturing part.

If we speak of it from model to model and brand to brand. We see that Kia has increased its price in the SUV section, that is particularly the Sonet and Seltos. But Kia has not focused of cars like Carnival due to its slow selling at this point affected due to the Pandemic.

When we speak about Tata, we see that they have hike the price in the passenger vehicle sector, from 8th May 2021. On an average they have hiked it up to 1.8%. Volvo has also hiked up its prices by 2 lakh INR to tackle the incoming hikes in prices. Maruti Suzuki has also gone up by 1.6 percent in the costing, and surprisingly Maruti has done it twice in this quarter itself. Toyota also has reassigned its pricing from the month of April 2021. But they have also assured this to be the most minimal hike possible for the company, there reason also being the input costs like Volvo. Hyundai has also been increased its prices this year due to input pricings and material costings.

Other companies like Volkswagen, BMW, Renault, Mahindra, Datsun, Skoda and Nissan also have given the same reason of input prices being hiked, for there revision of costing in the past quarter, and also for price hiking coming ahead. But the difference is that these companies have not revised sectors or the whole chart, but have only focused of the models which are being sold at a fast rate. Nissan and Datsun and BMW have sprung to the 4% to 5% hike range, whereas Volkswagen, Skoda and Ford being in the 2.5% to 3% range.

As we see Pandemic has given a major hit to the Automobile industry, and the material pricing is just acting like a catalyst and fastening the process of price hiking.

Thus, its rally hard to crack which model and company will give you the best buying option, and also makes us think, if its time to switch from Petrol and Diesel to Electric.

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