[Krishnan83]

Originally Posted by Ambi

I have been wanting to buy this ; have put off my plans for now

Can you help me understand why -- would love to know your reasons

[PearlJam]

Originally Posted by Vitalstatistiks

THIS IS NOW GETTING RIDICULOUS. These carmakers really take the public to be fools (in most cases we are, but let's keep fighting against the perception). There is literally no rise in the input cost.
...
...
It is GREEDFLATION. In other words, Greed in the garb of inflation.
...
It is a capitalist world after all. But please dont take us for us for fools and camouflage the increase on account of input cost. Just say it as it is. We are asking for more because clearly you can pay more.

While I understand your sentiment, I would not go so far as to call them "greedy", "trying to fool the public", etc. The articles above are trying to be unnecessarily sensational.

As you said so yourself, it's a capitalistic world. These are not essential services for the poor, in the traditional sense.

Suppose they did not camouflage the increase, and said it as it is - "yes, we are asking for more because clearly you can pay more" - would that make you happier? Toyota has already been doing this for years now, with their Innova and Fortuner, and there are still takers for it.

Also remember that cost increase need not only be raw materials. There are other costs like wages, electricity, rent/lease, depreciation, interest, insurance, advertisement, travel, etc - and we all know how some of these have increased manifold.

[jubingoel]

My dad was considering the Grand Cherokee for a while. However, after we read reports on serious transmission issues and ADAS issues with it in the US, he put it off for now. Any owners who could please advise if there's any truth to these complaints on the internet?

[jubingoel]

Originally Posted by PearlJam

Also remember that cost increase need not only be raw materials. There are other costs like wages, electricity, rent/lease, depreciation, interest, insurance, advertisement, travel, etc - and we all know how some of these have increased manifold.

One of the major costs for OEMs in the last 2 years was the rapidly increasing logistics cost (international ). That too however has dropped to pre-Covid levels in the last 6 months. I think I do agree that OEMs are being greedy and trying to create artificial demand and unnecessarily increasing prices.

[TusharK]

Mahindra to hike prices of its SUVs from January 2024

Mahindra has announced that it plans to increase the prices of its SUV range from January 2024. The company will also revise the prices of its CV range in the new year.



According to Mahindra, the adjustment in prices is in response to the rising costs due to inflation and increased commodity prices. The carmaker claims to have made efforts to absorb as much of the additional costs as possible. However, a portion of this increase will be passed on to customers. The extent of the price increase will vary across different SUVs and CVs.

Earlier, Maruti Suzuki, Tata Motors, MG and Audi India also announced price hikes that would come into effect from January 2024. Other carmakers are expected to make similar announcements in the days to come.

Link to Team-BHP News

[Ashdel]

Originally Posted by TusharK

Mahindra to hike prices of its SUVs from January 2024

Dear BHPians - its been ages that we all know that almost all Manufacturers will increase their car prices in new year - not sure why we all are posting it every year each time we hear something confirmed. please give a thought.

[PrideRed]

Originally Posted by Ashdel

Dear BHPians - its been ages that we all know that almost all Manufacturers will increase their car prices in new year - not sure why we all are posting it every year each time we hear something confirmed. please give a thought.

Not all manufacturers increase price same time and the percentage of increase is not standard either. This piece of information helps buyers sitting on fence if to make purchase now or post price hike.

[Ashdel]

Originally Posted by PrideRed

Not all manufacturers increase price same time and the percentage of increase is not standard either. This piece of information helps buyers sitting on fence if to make purchase now or post price hike.

Really ? cant agree to disagree

[ferrarirules]

Originally Posted by Vitalstatistiks

It is GREEDFLATION. In other words, Greed in the garb of inflation.

I don't think it is GREEDFLATION. There are a lot of factors at play other than just raw material prices. I will list some of the factors which come to my mind.

Stock price - (The most important of them all)

Everything for a company is related to revenue, profitability and profit margin. These parameters are much more important for a listed stock.

1. Revenue and profit numbers should be going up for positive stock sentiment.
2. It is important for the company to keep an increasing or constant profit margin again to keep positive stock sentiment.

So it is an inherent need for a company to show better numbers Y-o-Y to keep investors and shareholders happy. Even give them dividend or stock buybacks. How to achieve this - Reduce CAPEX, OPEX and increase revenue. But it is easier said than done.

When the market sentiment is good which it is for automobile industry, it is easiest to raise prices.

Operating expense


1. Yearly increased Employee expense
2. Maintenance
3. Supplier contracts
4. IT expense (I know this one does increase Y-o-Y for sure)

Raw material Cost


Yes, steel prices play a factor but i think in the modern car. Electronics play a critical role in prices as well.

Capital Expenditure

Capital expenditure is needed for

1. Expanding plants, setting up new plants
2. Researching to meet new emission norms or EV manufacturing
3. Researching and testing new car models

Conclusion - It is easy to say automobile companies are greedy, hence they are raising prices. According to me, these are shortfalls of capitalistic economies.

P.S. - This is a very 10,000 feet take on workings of a automobile company. I am not from the automobile industry.

[Ambi]

Originally Posted by Krishnan83

Can you help me understand why -- would love to know your reasons

Lack of E20 compliance ! These vehicles are coming with E10 compatibility only. I reached to "Petr Šolc" via linkedin for help on the same. The VW customer care team reached out to me with a sense of urgency as they had a customer escalate to their India Management. Customer care teams gave verbal assurances that vehicle is E20 complied. They even had the dealer send out an email confirmation that vehicle is E20 complied. I pushed for mail from the OEM (VW). After making me wait for ~ 1.5 months they politely denied saying that they do have requisite approvals to confirm on email that they will be able to provide E20 complied vehicle. This is after me committing (myself pushing them to accept token money) to buy a Tiguan subject to them providing an E20 complied instance. Anyways, its sad that I am unable to avail the ongoing offers.

[cooldip]

Originally Posted by northstar*

He has confirmed that the offer is only valid for the MY22 and MY23 models and not for MY24 ones which I am looking for. Jeep is having some old stock in their plant and is trying hard to get rid it seems. He even showed me the respective Jeep bulletin and I found to be genuine.

Jeep's dealers in Bangalore seem to have a mind of their own.

Jeeps Website Claims (highlighted in screen shot)

- INR 4,00,000 on Jeep Meridian Overland. In addition, get attractive exchange benefits up to INR 25,000 on your upgrade to Jeep Life. To know more, visit your nearest dealership now. (These are MY24 and I was looking for Limited(O) which is MY23 - shouldn't the discount be higher)
- Corporate discounts INR 30,000* (on the new Meridian - the sentence finished abruptly on the site)



Dealers' Claim
- INR 4,00,000 inclusive of exhange bonus, Loyalty bonus, corporate discount and insurance margin
- When I pointed the SA to the Jeep site he claims "Sir it is T&C apply"
- When I asked to send Jeep memo he shared some excel screen shot without any legitimacy of it being from Jeep

The icing on the cake is that the Meridian Limited (O) in Green is August 2023 make. I would suppose that the dealers+Jeep would try to better the discounts to push a August 2023 vehicle. Looks like they have other ideas.

[automowheels]

MG is doling out some more year-end offers. Check them out here.

[lightfootdriver]

Skoda dealer in Bangalore is offering 1L consumer discount and 20K dealer discount on slavia/kushaq Style variant 1.0 AT MY23 models. Does this look good or are more discounts available?

Also, are SMP and extended warranty avaipable fore free via skoda as part of year end benefits?

[sandeeprawat]

Any idea what's the current Thar price in NCR area? Any discounts going on currently? I got one allocated recently and want to know if I can expect any discounts from dealer before I close the deal.

[fhdowntheline]

Originally Posted by abhi162

I think if we look at the last decade for the four wheeler industry coupled with the fuel prices two things emerge (at least from my own observation)

1. Sticker price inflation for passenger vehicles has stayed ahead of the WPI/CPI
- just as an example when I got my T-Jet the segment was in the range of 8-12 lacs which now, for similar vehicles is 18-22 lac. So have the commodity prices doubled? No. Should the likes of erstwhile Octavia / Virtus / City / Verna / Compass etc be priced at what they are - most probably No.

As an example - where does it leave someone like me? One who dreamt of buying an Octavia at some stage (when T-Jet cost me 9) Octavia was around (23-25), when it left the country it was already 35

Surely your salary/ income has also doubled since you got the Linea T Jet? They( OEMs) know that. The average salary of Govt employees has increased quite a bit. They know that. So why should they sell cars dirt cheap? After all, their employees also expect commensurate salaries, isnt it?
Why havent car sales dropped because of YoY price increases? Simply because there is a market which can afford tto buy. I'd love to buy the Verna DCT at 14 lac in 2023 compared to my T Jet (10 .5 lac in 2011). But I paid approximately double at 20.4 lac. For what I get in the new car, its not too bad a deal after 12 years.